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CHCH News has learned that $1.5 million held in trust for people and businesses in Caledonia has gone missing.

The money was part of a 2006 class action settlement for those affected by protests at Douglas Creek Estates. It was the last of the provincial funds to be doled out this year, but now the Hamilton law firm that was holding the money has reported itself to the Law Society.

In 2011, lawyer John Findlay won $20 million from the provincial government for people and businesses in Caledonia.

Most of the settlement has already been sent to hundreds affected by the unrest in 2006 where activists from Six Nations took over a housing development under construction, disputing land claims with the federal government.

There was $1.5 million were left in reserve, in case of more claims, or to top up those who hadn’t been fully compensated. It was supposed to be distributed this year.

Findlay first hung up when CHCH News called about the investigation and no one was at his office when we stopped by. He later called back but would not explain what happened.

His website on the lawsuit reads “Findlay McCarthy PC has used the settlement funds held in trust for the final administration of the Caledonia compensation plan and have been unable to replenish these funds in order to effect the final distribution at this time.”

Business owners in Caledonia were not aware there was money left, nor was the mayor, Ken Hewitt. He didn’t want to comment until he learned more.

In 2011, the Tory MPP for Haldimand wondered about the timing of the settlement which came shortly before the 2011 election. Now he wonders about the attorney general’s oversight.

“We take these allegations very seriously. They go to the trust between lawyers and clients. I trust the law society to take appropriate actions.” said Attorney General of Ontario Yasir Naqvi.

Findlay said this is not the fault of any rogue employee, and he said he was not surprised when the money was missing.

He says there is still a chance people in Caledonia will get the compensation they’re owed but it will likely be delayed.

The law society says it is aware and is currently investigating. If warranted, the society can discipline lawyers including taking away their license to practice.

Lawyers are mandated to report any wrongdoing to the law society, including “the misappropriation or misapplication of trust monies.”