Facing dozens of fraud allegations Raj Grewal forced to halt all law work. Judge says he appears to have ‘Robbed Peter to pay Paul’
In a rapidly widening legal and financial spiral spanning at least two years, former Brampton MP Raj Grewal is now being accused by a judge of Ontario’s Superior Court of appearing to have “robbed Peter to pay Paul” in “ongoing efforts to wheel and deal”.
The stunning characterization by Justice Fred Myers in an order he issued Tuesday for the latest of at least two-dozen lawsuits filed against Grewal since May, adds another damning layer of allegations against the former politician.
Dozens of accusers in Peel and beyond have brought forward lawsuits describing shocking claims of fraud, conspiracy and messy scheming by Grewal as he was sinking deeper into real estate debt since at least last year.
His careless and clumsy attempts to deceive banks, borrowers and helpless clients who went to him for simple legal work, often retaining his services to transfer mortgage funds after buying or selling a home, are laid bare across thousands of pages of legal documents now before Ontario’s courts.
Justice Myers is handling many of the cases, and has lost any patience he appeared to offer when the first legal filings against Grewal were brought forward in April.
His order on Tuesday granting a request to freeze assets in the latest case – a lawsuit filed Monday, August 3 – includes language usually used by judges when the evidence before them reveals conduct that undermines the very foundations of justice.
A day after the excoriating order by Justice Myers, Grewal, who is facing suspension by the Law Society of Ontario and the Tribunal that hands down decisions, was effectively forced to hand in his law licence, agreeing to immediately halt all activities as a lawyer until a final decision on his future in the legal field is determined following a Law Society Tribunal hearing set for August 14. The LSO issued a notice last month declaring its effort to suspend Grewal was launched on the basis that “there are reasonable grounds for believing that there is a significant risk of harm to members of the public, or to the public interest in the administration of justice.”
On Wednesday, August 5, the LSO posted a notice stating Grewal, “effective immediately…will not engage in the practice of law as a barrister and solicitor in Ontario or provide legal services in Ontario until the motion” for a potentially permanent suspension is decided on, following the August 14 hearing.
In his order Tuesday, Justice Myers explained the key submissions in the latest lawsuit. “The Plaintiffs’ evidence, supported by contemporaneous documents, is that they retained Mr. Grewal to transfer a property from the two brothers to their corporation,” Myers wrote. “At the same time the existing first mortgage was being refinanced and replaced with a new mortgage to be granted to the corporation by CIBC.”
A request for comment was sent to lawyers representing Grewal in some of the mounting legal cases against him. No response was received.
Evidence made public by the Law Society of Ontario as part of the hearing to suspend Raj Grewal’s licence to practice law appears to show Grewal admitting to fraudulent mortgage loans totalling $30 million. Transcripts of audio calls show Grewal admitting “it was a big mistake”.
(The Pointer files)
The lawsuit alleges Grewal – described as “a lawyer and the founder of RSG Law,” who “was the Plaintiffs' principal point of contact at RSG Law” and a “directing mind” of the firm – and RSG Law fraudulently claimed a certified cheque for $862,371 was given to National Bank in January to cover a mortgage after the plaintiffs retained RSG Law, the firm founded by Raj Grewal, for a real estate transaction.
Grewal “did not pay National Bank anything,” the lawsuit, one of at least a dozen against RSG Law and Grewal alleging a similar pattern of mortgage fraud, claims.
“On February 12, 2026, National Bank advised the Plaintiffs that no payment had been received.” National Bank advised that the claim by Grewal’s law firm in January, that RSG had provided a certified cheque for $862,371, was not true: “That representation was false: no such payment was received by National Bank, and the Defendants have never produced the cheque, proof of its delivery or negotiation, or the trust ledger for the file, despite repeated requests.”
The lawsuit continues.
“Between February and June 2026, Grewal made repeated written representations to the Plaintiffs that the payout was imminent or in progress, including that a new payout statement had been requested and ‘then we're gonna go pay it off’; that it ‘should be done by Wednesday’; and that he would ‘personally get it done today’. Those representations were false when made. In the same period Grewal admitted that RSG Law's accounts had been frozen and that he had retained counsel to ‘get our accounts back’; stated that he had withdrawn or would withdraw personal funds from a private wealth account and break a GIC to ‘clear this up’; and, when National Bank began contacting the Plaintiffs directly, counselled them to say only that they would ‘follow up with your lawyer’. The Plaintiffs relied on the Defendants' representations, forbore from acting, and suffered continuing loss.”
The lawsuit includes details of a statement of claim filed by National Bank against RSG Law on June 25, regarding other mortgages that were never paid out: “The Plaintiffs plead the existence of these and other related proceedings as evincing a pattern of conduct and a risk of dissipation (the fraudulent moving of funds).”
The plaintiffs in the case sought an order from the Superior Court of Justice’s Commercial List to freeze Grewal’s assets and those of RSG Law, in the hope that the $862,371 given to the firm to cover the mortgage could be traced, secured and returned to the plaintiffs after Grewal allegedly defrauded them of their money.
“The Plaintiffs provided $720,000 to the law firm from CIBC and another approximately $130,000 of their own to the law firm in trust to be used to pay out the existing first mortgage. The lawyers did not pay the funds to the first mortgagee as required. The Plaintiffs do not know what the law firm has done with their money,” Justice Myers wrote in his order Tuesday granting the request to freeze RSG’s and Grewal’s assets.
The Pointer’s coverage of Raj Grewal and RSG Law:
Justice Myers pointed out how shoddy Grewal’s efforts to cover up the fraud were, first claiming a certified cheque was provided to National Bank in January then later making repeated “excuses” admitting the funds were never provided.
“Just this past weekend, Rajvinder (Raj) Grewal is recorded as having said that the payment will be made as soon as the firm is able to settle the litigation against it that has kept its accounts frozen. At other times, Mr. Grewal has indicated that he will obtain funds from his personal accounts at identified institutions to make payments. This suggests some intermingling of client funds and personal funds may have taken place.”
Justice Myers did not stop there.
“I infer from the brazenness of the fraud, the lawyers’ (Raj Grewal and his associate at RSG Law) delays in responding, and ultimately the ongoing efforts to wheel and deal, including involving intermingled ‘personal’ assets, that efforts by the Plaintiffs to recover the funds owing to them would likely be thwarted by dissipation by the Defendants.”
The Judge’s stunning choice of words continued.
“The Plaintiffs included in evidence some decisions in other similar cases against the law firm and the lawyers (Grewal and his associate). It appears there was a pattern of misconduct in which the lawyers either outright misappropriated funds or, in many cases, robbed Peter to pay Paul.”
Justice Myers then addresses head on claims by Grewal, who has said through his lawyer that he sold RSG Law to his associate, Davinder Khattra, three years ago, just before Grewal’s legal troubles began. Khattra is still in his 20s and had only recently graduated law school when Grewal claimed to have handed over the firm to him, distancing himself from its operations and no longer carrying out day-to-day activities for RSG Law.
Mounting evidence in the dozens of cases against Grewal and the firm he founded contradict his claims, as did Justice Myers in his Tuesday order.
“The Defendants have assets in Canada in their firm and investments. Whether Mr. Grewal is formally a partner of the firm at present, he plainly has been acting on this matter throughout and as recently as this past weekend. Whatever his arrangements with Mr. Khattra may be, he represents that he is engaged in the settlement efforts and the management of the firm’s trust funds.”
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