This follows a lawsuit by WIGI Restructured Bond Corporation filed on May 25<\/a> alleging RSG Law, along with Avtar Singh Grewal (Raj Grewal\u2019s father) and other defendants, attempted to defraud it out of approximately $4 million in connection to a land sale in the Brantford area. WIGI filed a $5.5 million lawsuit against Avtar Grewal and the law firm his son founded. Raj Grewal is not a defendant in that lawsuit.\u00a0<\/p>\n These lawsuits are in addition to the lawsuit filed by the Brampton family<\/a> against RSG Law after $714,000 from a home sale transaction was frozen inside the trust account of RSG Law when an investigation by Scotiabank into fraudulent cheques found some of the money ended up in the law firm\u2019s accounts.<\/a> The court filings by Scotiabank do not allege any wrongdoing by RSG Law and the firm has said through its legal representation that it did nothing wrong when the fraudulent cheques were deposited into its accounts.<\/p>\n Transactions being investigated by Scotiabank involve deposits received by Rajkiran Sidhu Law Professional Corporation that drew funds from fake cheques. Sidhu has stated he had nothing to do with the fraudulent funds that ended up in his accounts. Some of that money, after more transactions, ended up in RSG Law\u2019s Scotiabank accounts, which were subsequently frozen.<\/p>\n Raj Grewal, meanwhile, is facing a second lawsuit in addition to the statement of claim regarding the Oakville property he purchased with his father.\u00a0<\/p>\n Filed to the Ontario Superior Court of Justice on May 8 by Vector Financial Services Limited and Olympia Trust Company, the suit alleges Grewal and a company he owns, RSG Mayfield, owe the plaintiffs $25.6 million, after lending Grewal $25 million to purchase the nearly 20-acre Brampton property last year. Grewal is listed as the sole director of RSG Mayfield in Ontario business registration documents. The company address is the same as RSG Law, the firm he founded, 6605 Hurontario Street Suite 400, Mississauga.<\/p>\n The Statement of Claim alleges in April of this year Raj Grewal and his company failed to make the scheduled interest payment for the\u00a0property RSG Mayfield purchased a year ago. The address of the property is not listed in the statement of claim. Vector and Olympia agreed to lend Grewal $25 million last year to purchase the nearly 20-acre property, which according to the lawsuit was to be turned into a residential housing development.\u00a0<\/p>\n Grewal\u2019s lawyer did not respond to a request for comment. As of Wednesday morning, June 24, no statement of defence had been filed with the court.<\/p>\n \u00a0<\/p>\n A photo of Raj Grewal\u2019s former Brampton constituency office from his time as a Member of Parliament. <\/p>\n (The Pointer Files)\u00a0<\/p>\n \u00a0<\/p>\n The plaintiffs are seeking $25.6 million from Raj Grewal, \u201cplus applicable contractual interest, protective disbursements and legal fees in respect of his obligations owing as Guarantor pursuant to the Loan,\u201d and other costs.\u00a0\u00a0\u00a0<\/p>\n On June 22, RSG Law was hit with another lawsuit, by a couple in Georgina who allege RSG Law and its lawyer Davinder Khattra failed to pay off a more than $800,000 mortgage on a property they purchased, despite the money being sent to the RSG trust account.\u00a0<\/p>\n Lindsay and Casey Sellers are seeking $870,000, plus $500,000 in damages for \u201cfraud and fraudulent misrepresentation, breach of undertaking, breach of trust conversion, unjust enrichment, breach of fiduciary duty, breach of contract, conspiracy, and intentional interference with economic relations.\u201d\u00a0<\/p>\n The statement of claim names RSG Law and Davinder Khattra.\u00a0\u00a0<\/p>\n The lawsuit details that the Sellers purchased a property in Georgina in August last year. The owners of the property at the time used RSG Law and Khattra as their legal representation for the sale.\u00a0<\/p>\n When the couple purchased the property, a $837,299.93 mortgage was registered on the title with CIBC.\u00a0<\/p>\n On October 1, the plaintiffs wired $1,031,840.71 to RSG Law to cover this amount and other costs.\u00a0<\/p>\n The next day, an official with RSG Law informed them Khattra would be \u201cmaking the payment today\u201d, referring to the outstanding mortgage amount.\u00a0\u00a0<\/p>\n But that never happened, the statement of claim alleges.\u00a0<\/p>\n For months, lawyers for the plaintiffs attempted to obtain proof from RSG Law and Khattra that the mortgage had been paid off to CIBC, but were unsuccessful, the claim alleges.\u00a0<\/p>\n Claims by RSG and Khattra that the payment was made were never supported with documents, the lawsuit alleges.\u00a0<\/p>\n \u201cOn or about February 17, 2026, the Defendants provided what they represented to be payout correspondence and a certified cheque relating to the (mortgage). The Defendants never provided confirmation from CIBC that the certified cheque was received, negotiated, credited or otherwise applied to discharge the (mortgage),\u201d the lawsuit alleges.<\/p>\n It continues: \u201cOn or about March 23, 2026, CIBC advised the Purchasers counsel that the CIBC Charge remained active and that $814,113.60 remained owing. When confronted with that information, Mr. Khattra represented that he struggled to understand how that was possible because the CIBC Charge had been paid out and payment confirmation had been provided.\u201d<\/p>\n The next day, Khattra said \u201chis office had been actively following up with CIBC\u2019s discharge department and had previously arranged for payout and received confirmation. Mr. Khattra did not provide confirmation from CIBC supporting those representations,\u201d the lawsuit alleges, adding this was completely contrary to what Khattra said in October 2025 when he claimed the payment was being made at that time. At least five months later, long after the property transaction, what should have taken a matter of days, still had not been done. CIBC still had not received the money from RSG Law. This was at least six months before the firm\u2019s trust accounts with Scotiabank were frozen due to the separate fraudulent cheque issue which RSG says it had no involvement with.<\/p>\n \u201cIn correspondence with CIBC in March 2026, Mr. Khattra referred to the payout cheque as being enclosed at that time, rather than as having been delivered to CIBC on or about October 2, 2025. On or about March 26, 2026, the defendants also forwarded correspondence that Mr. Khattra had purportedly sent to CIBC\u2019s Mortgage Discharge Escalations Unit, but the email had been sent to the incorrect address.\u201d<\/p>\n In April, the plaintiffs learned from CIBC that several requests to discharge the mortgage had been made, one in October 2025, another in November\u2013both of which were cancelled\u2013then another on March 24, 2026. The final request was missing information, the lawsuit alleges.\u00a0<\/p>\n \u201cThese cancellations taken together with RSG Law\u2019s simultaneous representations to the Purchasers\u2019 counsel that the CIBC Charge had been paid out, are strong evidence that the funds were never applied to their intended purpose and that RSG Law was actively concealing that fact,\u201d a factum filed with the court details.<\/p>\n Instead, RSG and Khattra \u201ccontinued to represent that the CIBC charge was \u2018closed out\u2019 that CIBC had escalated the matter and that the discharge would be registered immediately. The defendants did not provide confirmation from CIBC that the CIBC Charge had been paid out.\u201d<\/p>\n The plaintiffs allege this was possibly a tactic to provide RSG Law and Khattra time to disperse the funds to others, which were supposed to be used to pay off the mortgage on the property they purchased.<\/p>\n Raj Grewal in Brampton\u00a0when he was one of the city’s Liberal\u00a0MPs, with former prime minister Justin Trudeau, shortly before\u00a0Grewal\u00a0stepped down in 2018 following gambling problems after he spent much of his time in Ottawa at a casino where he racked up millions of dollars in debts.<\/p>\n (The Pointer file photo)<\/p>\n \u00a0<\/p>\n Court documents obtained by The Pointer regarding the ongoing legal troubles RSG Law is facing, show at the end of May, there was only about $340,000 in RSG\u00a0Law\u2019s trust account with Scotiabank.<\/p>\n \u201cBy retaining, transferring, disbursing, or otherwise dealing with the CIBC Discharge Funds for purposes other than discharging the CIBC Charge, the Defendants converted the Purchasers\u2019 funds for their own benefit or for the benefit of others. The Defendants were enriched by receipt and control of those funds, the Purchasers suffered a corresponding deprivation, and there is no juristic reason for the Defendants\u2019 enrichment,\u201d the lawsuit alleges. \u201cBeginning at a time unknown and continuing to the present, the Defendants, together with any persons unknown whose identities will be particularized after discovery, agreed or acted in concert to misappropriate, divert, conceal, or otherwise deal with the CIBC Discharge Funds for the CIBC Charge for purposes other than discharging the (mortgage).\u201d<\/p>\n On the same date the plaintiffs’ lawsuit was filed, the court granted an injunction to have the banks involved provide documentation showing what RSG did with the money from the plaintiffs once it arrived in their accounts.\u00a0<\/p>\n Justice Fred Myers, writing in a June 22 decision, believed there was a serious risk the money had already been dispersed from the RSG accounts, particularly after the actions of Khattra to allegedly deceive the plaintiffs about the payout of the CIBC mortgage.\u00a0<\/p>\n \u201cNot only did he (Khattra) not forward the funds to CIBC, but after coming under pressure to account for them, he fraudulently purported to register a discharge of the mortgage on title without CIBC\u2019s authority and without paying it. CIBC denies the efficacy of this filing,\u201d Myers wrote. \u201cI infer a serious risk of dissipation of the funds by the law firm and Mr. Khattra. I do so based on the brazenness of their fraud and their efforts to stall the Plaintiffs from learning about their failure to pay the funds to CIBC as required. The creation and registration of a fake discharge could only be to buy time as it would always be discovered as soon as CIBC came looking for its money,\u201d Myers wrote in his scathing order.\u00a0<\/p>\n In a factum filed as part of the request to freeze RSG Law\u2019s accounts up to $870,000 and trace the location of the money, the lawyers for the plaintiffs allege, \u201cThis is not the first time Mr. Khattra and RSG Law have engaged in such conduct,\u201d referencing the lawsuit by WIGI which alleges Khattra and RSG Law \u201cengaged in a \u2018seemingly intentional and dishonest scheme\u2019 to conceal the sale of property from a mortgagee and that there was a \u2018serious risk\u2019 they would dissipate assets.\u201d<\/p>\n The Pointer has previously detailed the allegations in that lawsuit<\/a>.<\/p>\n Justice Myers offered a harsh warning to RSG Law in his June 22 order regarding the alleged fraud against the plaintiffs who thought they had purchased a new home last fall without issue.<\/p>\n \u201cPutting people who commit this kind of overt fraud on notice is just an invitation to them to take additional steps to frustrate the reach of the civil law and to further prejudice the Plaintiffs\u2019 rights. Perhaps in their brazenness, they have not yet moved the money. One never knows until you look.\u201d<\/p>\n
Email: [email\u00a0protected]<\/a><\/p>\n At a time when vital public information is needed by everyone, The Pointer has taken down our paywall on all stories\u00a0to ensure every resident of Brampton, Mississauga and Niagara has access to the facts. For those who are able, we encourage you to consider a subscription. This will help us report on important public interest issues the community needs to know about now more than ever. You can register for a 30-day free trial\u00a0HERE<\/a>. Thereafter, The Pointer will charge $10 a month and you can cancel any time right on the website. Thank you<\/p>\n","protected":false},"excerpt":{"rendered":"Former Brampton MP Raj Grewal is being sued in two separate lawsuits for failing to make payments on…\n","protected":false},"author":2,"featured_media":759353,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[194339],"tags":[51759,49,48],"class_list":["post-759352","post","type-post","status-publish","format-standard","has-post-thumbnail","category-brampton","tag-brampton","tag-ca","tag-canada"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/759352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=759352"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/759352\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/759353"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=759352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=759352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=759352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/06\/6a3c83454a197.jpg\")
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