OTTAWA — Ontario’s legal regulator is seeking to suspend or restrict former Liberal MP Raj Grewal’s licence amid allegations involving trust money, fraud and a series of disputed real estate transactions.The Law Society of Ontario filed a motion against Grewal with the Law Society Tribunal on Friday.The regulator said it is investigating allegations that Grewal may have misappropriated or misapplied trust money, participated in or failed to prevent dishonest or fraudulent conduct, misled others and failed to act with honour and integrity.“There are reasonable grounds, arising out of the investigations, to believe that there is a significant risk of harm to members of the public,” the motion states.The Law Society is seeking an interlocutory suspension or restrictions on Grewal’s practice while its investigation continues.Such an order is an interim protective measure and does not amount to a finding that the allegations have been proven..Davinder Singh Khattra, a lawyer connected to RSG Law, faces a similar motion from the regulator.Grewal founded the Mississauga law firm, whose initials match his own. His lawyers say he sold the firm to Khattra in 2023 and has had limited involvement in its daily operations since then.A preliminary hearing involving the two lawyers is scheduled for Monday.The regulatory action follows a series of lawsuits involving Grewal, RSG Law, family members and associated companies.The civil allegations include failing to repay mortgages and other loans, improperly removing debts or secured properties from land-title records and receiving money in trust without using it to discharge loans as directed.One case alleged that proceeds from fraudulent cheques were transferred into RSG Law’s trust account. Grewal was not personally named in that action, which his lawyers say has been settled.Other plaintiffs have alleged that mortgage funds entrusted to the firm were not transferred to lenders and that properties were sold after registered security was removed.Judges have issued orders freezing accounts or assets in some of the proceedings, but the underlying allegations have not been proven at trial.Grewal denies wrongdoing.His lawyers, Simon Bieber and Emma March, described the cases as commercial disputes of the type that can arise when business relationships deteriorate.“Mr. Grewal is working diligently to resolve all outstanding litigation in a manner that is fair to all involved,” they said.They also said at least three cases have been settled.Khattra has said several significant lawsuits have been resolved and that he cannot discuss matters still before the courts.A court filing also claims Peel Regional Police are examining some of the allegations. Police have not announced criminal charges against Grewal or Khattra in connection with the current disputes.Grewal represented Brampton East after being elected as a Liberal in 2015.He left the Liberal caucus in 2018 after publicly acknowledging a gambling problem and significant personal debts, but remained in Parliament as an Independent until the 2019 election.The RCMP later charged Grewal with breach of trust and fraud over allegations connected to loans used to cover his gambling debts.He was acquitted in 2023 after the court found prosecutors had not proven that he used his political position to obtain the loans.The current Law Society proceeding is separate from that earlier criminal case.The Law Society Tribunal has the authority to impose interim restrictions, suspend a lawyer or allow the lawyer to continue practising while an investigation proceeds.
