Ex-Liberal MP Raj Grewal faces Law Society move to suspend licence over alleged mortgage fraud

The Law Society of Ontario has submitted written arguments seeking to suspend the law licence of former Liberal MP Raj Grewal, accusing him of conditioning repayment to lenders on their refraining from reporting alleged fraud. The factum alleges Grewal orchestrated a $15 million mortgage on a client’s property without consent, supplied bogus title insurance, and misused client trust monies. He is also said to have tried to persuade a client to fabricate a narrative to dodge a regulator complaint.

A hearing before the Law Society Tribunal is set for Aug. 14, and both Grewal and his former colleague Davinder Khattra are being investigated by Peel Regional Police. The allegations have sparked a wave of civil suits from lenders and clients, with disputes approaching $100 million and over 100 properties frozen by the provincial land-titles office. Grewal, who resigned from Parliament in 2018 after a gambling-related scandal, continues to deny wrongdoing while his legal team seeks disclosure of evidence. The case underscores potential risks to borrowers and lenders stemming from alleged real-estate and trust-fund misconduct.