Brampton, Ontario, July 29: Former Brampton East Liberal MP Raj Grewal, who was acquitted last year of criminal breach of trust charges linked to allegations surrounding gambling debts, is facing a new professional misconduct investigation after the Law Society of Ontario (LSO) sought to suspend or restrict his licence to practise law over fresh allegations involving trust funds.
According to a notice issued by the Law Society earlier this month, Grewal is under investigation for the alleged misappropriation and/or misapplication of trust monies. The regulator also alleges that he “may have knowingly participated in, facilitated or otherwise failed to prevent dishonesty, fraud, crime or illegal conduct.”
The allegations have not been proven, and no findings have been made by the Law Society.
Law Society Seeks Immediate Action
In a notice dated July 10, the Law Society stated it is seeking either the suspension of Grewal’s licence or restrictions on his ability to practise law.
The regulator said there are reasonable grounds to believe there is a significant risk of harm to members of the public and the public interest if no interim action is taken while its investigation continues.
A hearing on the matter has been scheduled for August 14.
Law Firm Also Under Scrutiny
Grewal is the founder of RSG Law, a Mississauga-based law firm.
The Law Society has also suspended another lawyer associated with the firm, Davinder Singh Khattra, in connection with similar allegations involving trust funds.
The regulator has not publicly disclosed detailed evidence supporting the allegations, and the disciplinary proceedings remain ongoing.
Civil Litigation Reported
Media reports indicate that Grewal is also connected to multiple civil lawsuits.
According to the National Post, one lawsuit alleged that proceeds from three fraudulent cheques totaling more than $5 million were deposited into RSG Law’s trust account.
The lawsuit reportedly did not name Grewal personally as a defendant and was later settled out of court.
The allegations raised in the civil proceedings have not been tested in court.
Previous Criminal Case
Grewal served as the Member of Parliament for Brampton East from 2015 to 2019.
He resigned from the Liberal caucus in 2018 after allegations surfaced that he sought millions of dollars in personal loans to repay gambling debts.
In 2020, the Royal Canadian Mounted Police (RCMP) charged Grewal with four counts of breach of trust and one count of fraud over $5,000.
At trial, prosecutors proceeded only on two breach of trust charges, alleging Grewal offered assistance with visas or special access to then-Prime Minister Justin Trudeau in exchange for financial assistance from business associates.
Following trial, Grewal was acquitted of both breach of trust charges. The court found the Crown had not proven the allegations beyond a reasonable doubt.
Civil Action Against Authorities
Following his acquittal, Grewal filed a $1 million lawsuit against the RCMP and the Ontario Attorney General, alleging damages arising from the criminal investigation and prosecution.
That civil action remains separate from the Law Society’s disciplinary proceedings.
Awaiting Hearing
Multiple requests for comment from Grewal’s legal representatives were reportedly not answered before publication.
The Law Society hearing scheduled for August 14 will determine whether interim restrictions or a suspension should be imposed while the professional misconduct investigation continues.
The case represents a separate legal process from Grewal’s previous criminal proceedings. Unlike the criminal trial that resulted in his acquittal, the current matter involves professional regulatory allegations concerning his conduct as a lawyer. The Law Society’s tribunal will ultimately determine whether professional misconduct occurred and whether disciplinary action is warranted.