Alleged mortgage perp makes off with $3.5 million

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Another day, another mortgage fraud; this time, the alleged perpetrator has fled the country.
 
Mississauga-based real estate lawyer, Rita Grewal, has allegedly fled the country – leaving behind her home and practice – with $3.5 million in mortgage funds she was holding in a trust account.
 
The Law Society of Upper Canada believes she has fled to India.
 
“By the end of July 2014, (Grewal’s) home and her office had been vacated and her files have not been located,” wrote hearing panel chairman David Wright in the recent decision on the law society’s application for an interlocutory suspension, according to the Law Times News. “Activity on her credit cards suggests that Ms. Grewal may have gone to India. Ms. Grewal has not responded to the law society’s inquiries or to this proceeding and has not explained what happened to the money.”
 
The funds being held were related to purchases, sales and refinances.
 
While $3.5 million is the total number of funds missing, Wright’s ruling states, that Grewal’s account held a mere fraction of that -- $100,000 – when it was finally frozen.
 
To date, the law society has received 11 complaints from clients who say they handed money over to Grewal under the impression that it would go toward their mortgages. It has since suspended her license to practice law in Canada.
 
Grewal, who was called to the bar in 2011, is described by one former colleague as a dedicated legal professional.
 
“She was very normal and a pretty dogged lawyer,” fellow lawyer, Moira Gracey told the Toronto Star. ““It’s unbelievable. I was just speechless and I still can’t get over it.”
  • Glen on 2014-11-13 1:14:20 PM

    Similarly ... Agatha Chung

    http://www.mortgagebrokernews.ca/news/notary-suspension-offers-lesson-for-brokers-173863.aspx

  • Angela Wong-Liao - Invis on 2014-11-13 4:06:47 PM

    I notice over the past ten years, I am finding mortgage frauds by real estate lawyers are growing quickly. Why?

    I understand that real estate lawyers are making less money in comparing to their counterparts who are practicing other types of law, ie: family law, corporate law, immigration law, labour law and others, can this be one of the reason of the increasing mortgage frauds by real estate lawyers?

    I caution my clients, especially first time home buyers to deal with bigger and more reputable law firms when they are choosing their lawyers.

    Lenders are careful in accepting lawyers, I have seen real estate lawyers who were accepting by the lenders before and refused to accept the same lawyer now for client transactions.

  • Terry Lynch on 2014-11-13 4:16:34 PM

    How is this Mortgage Fraud since, unless I'm mistaken, it seems no lender is out of pocket? According to your report, it looks like these people were victims of pure and simple FRAUD

  • Terry Lynch on 2014-11-13 4:16:41 PM

    How is this Mortgage Fraud since, unless I'm mistaken, it seems no lender is out of pocket? According to your report, it looks like these people were victims of pure and simple FRAUD

  • Ron Butler on 2014-11-13 7:26:56 PM

    Correct Terry, looting your trust account and fleeing the country is plan old fraud and theft. The mortgages were just tangential. Based on recent observations the LAWPro premiums should be on the way up big tlme.

  • Kuldip S Panesar Homeland Mortgage Corp. on 2014-11-14 2:46:29 PM

    This is not a mortgage fraud , title of this news may changed. The Fraud is committed by the Lawyer and innocent clients are victims. There may be possibility of the involvement of the real estate agents.
    If these Lawyer are making less money than other Lawyers who deal with family disputes and other criminal cases that doesn't mean they should do frauds.
    There must be more checks and controls on the trust accounts of the Lawyers .

  • James Resourceful Capital Financial Corporation on 2014-11-19 2:59:21 PM

    This is just fraud, plain and simple. Planned and pre-meditated fraud. Sadly you read about this regularly nowadays.

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