Business · Companies · 1 hr ago
Three GTA law firms placed in receivership over alleged mishandling of client funds
An Ontario judge placed three Greater Toronto Area law firms in receivership amid allegations that millions of dollars in client money were mishandled.
The firms are Simran Law and JP Mann Law Firm, in Brampton and Mississauga, and RSG Law.
Receivers have been appointed to take control of the firms, including accounting firm Doane Grant Thornton for Simran Law and JP Mann Law Firm.
In one set of transactions, more than $18 million in mortgage funds was supposed to pay off existing mortgages, but the funds went missing and the mortgages were not discharged.
The fraud allegations have not been proven in court, and RSG Law founder Rajvinder Grewal has agreed not to practise while awaiting a disciplinary hearing.
The judge warned that problems with real estate lawyers’ trust accounts appear to be recurring and could threaten public confidence in the legal system.
The receivers will take control as the cases continue, while the allegations and the handling of client funds remain under scrutiny.
Three Greater Toronto Area law firms have been placed in receivership amid allegations of mishandling client funds in real estate transactions.
An Ontario Superior Court judge appointed Doane Grant Thornton LLP to take control of Simran Law Professional Corp. and JP Mann Law Firm Professional Corp.
A separate order put RSG Law under the control of receiver AlixPartners Advisory Inc.
In the Simran and JP Mann matters, more than $18-million in mortgage funds went missing instead of being used to pay out existing mortgages.
The allegations of fraud have not been proven in court.
- Who
- Simran Law, JP Mann Law Firm and RSG Law were placed in receivership.
- What
- Receivers were appointed amid allegations that client funds were mishandled during real estate transactions.
- When
- The orders were issued last week; a separate order involving RSG Law was issued on Friday.
- Where
- The firms are in the Greater Toronto Area, including Brampton and Mississauga, Ontario.
- Why
- The appointments followed allegations of missing or mishandled client and mortgage funds.
This story does not have two clearly opposing sides.
Justice Dunphy issued an order concerning three civil cases in which lenders sought to recover trust funds from lawyer Anil K. Sharma.
Justice Dunphy appointed Doane Grant Thornton LLP as receiver for Simran Law and JP Mann Law Firm.
Justice Dunphy ordered RSG Law placed under the control of receiver AlixPartners Advisory Inc.
- Firms placed in receivership
- Simran Law, JP Mann Law Firm and RSG Law
- Receiver for Simran Law and JP Mann
- Doane Grant Thornton LLP
- Receiver for RSG Law
- AlixPartners Advisory Inc.
- Mortgage funds in Simran and JP Mann matters
- More than $18-million
- Number of cited transactions
- 25 occasions since February
What people are saying
the tip of an iceberg
with distressing regularity
if left unaddressed, represents an exceptionally grave attack on the profession of law at large and the integrity of our civil legal system.
Lawyers themselves need to raise the bar, that’s why we’re self-regulated,