The Mississauga-based law firm of former Brampton MP Rajvinder “Raj” Grewal has been placed under court-ordered receivership, and its accounts have been put on administrative hold amid a fraud investigation.
The receivership is the latest development in the legal troubles linked to RSG Law and RSG Mayfield Inc. – both founded by Grewal, who is a former Brampton East MP and lawyer.
The order dated Oct. 23 comes from a dispute related to the $5.2 million sale of a 99.7-acre property south of Brantford, insolvencyinsider.ca reports. AlixPartners Restructuring has been appointed receiver of all of RSG Law’s assets, undertakings, properties and funds that the firm was required to hold in trust for the property.
RSG’s partners, employees, agents and financial institutions “are restrained from withdrawing, transferring, paying, disbursing, releasing, encumbering or otherwise dealing with the Property, except with the written consent of the Receiver or further Order of this Court,” the order reads. Banks dealing with RSG Law have been ordered to place an administrative hold on accounts, “and shall not permit any dealing with those funds except with the written consent of the Receiver.”
The Law Society of Ontario has suspended Grewal amid fraud allegations of possible “misappropriated and/or misapplied trust monies.” RSG Law lawyer Davinder Singh Khattra was also suspended over similar allegations.
Peel Regional Police say a fraud investigation was launched in July, with officers looking into “the conduct of lawyers operating under RSG Law.”
RSG Mayfield Inc. is reportedly in $26.3 million of debt after defaulting on a loan secured against an undeveloped residential property at 0 Mayfield Rd. in Brampton planned as a residential community with 52 single-family homes, 52 townhouses and 260 condominium apartments.
A court has appointed TDB Restructuring to sell the development project, with any surplus proceeds to be transferred to AlixPartners for review in related litigation involving the developer’s principal, the report says.
Grewal was the MP for Brampton East from 2015 to 2019, and stepped down in 2018 over allegations he used his position to solicit millions of dollars in loans to help pay off gambling debts. The former MP left the Liberal caucus in 2018 after his gambling issues were made public.
He was acquitted on two breach of trust charges after the Crown suggested Grewal offered help with visas or special access to Prime Minister Justin Trudeau in exchange for financial help from friends and businesspeople in his riding. Grewal later filed a lawsuit seeking damages from the RCMP and the Ontario Attorney General.
A lawsuit filed in Ontario Superior Court earlier last month by private lenders SSMT Management Inc. and Oculus Mortgage GP Inc., alleges that two Sikh temples jointly obtained financing that was eventually increased to $15 million. Grewal is also named as a guarantor.
The lenders allege that about $12 million of the agreed financing was actually advanced and that more than $13 million, including outstanding interest, remains owing.
None of the allegations in the latest civil lawsuit, or the broader allegations currently before the courts and Law Society Tribunal, should be treated as findings of wrongdoing unless and until they are proven.
Peel police are looking to speak with anyone who believes they may have suffered a financial loss or may have information about the investigation. Anyone with information can contact Peel Regional Police by calling 905-453-2121 ext. 3335.
INSAUGA Canada’s Editorial Standards and Policies
Last 30 Days: 55,861 Votes
All Time: 1,599,093 Votes
528 VOTES
Are you happy with the election results in your town or city?
Stay in the know.
Subscribe now to receive our daily email of today’s top stories in your city!