The Law Society of Ontario has suspended Burlington lawyer Crystal Diane Masterson while it investigates allegations that she played a role in a $25-million Ponzi scheme. The alleged scheme also involves a Halton Regional Police sergeant and a former musician, with funds flowing through Masterson’s trust account.
The Law Society of Ontario has suspended the licence of Burlington lawyer Crystal Diane Masterson, 40, after allegations surfaced that she was involved in a Ponzi scheme that saw $25 million pass through her trust account.
Masterson reported to the regulator in March that she had been charged with fraud over $5,000. A Law Society Tribunal decision dated September 10 ordered her interlocutory suspension, citing “serious concerns about the lawyer’s integrity and trustworthiness.”
According to tribunal documents, Masterson first became aware of the scheme through a friend — a co-accused mortgage broker — who presented it as a series of private bridge loans and equipment financing transactions secured by a wealthy businessman. Masterson later invested $175,000 of her own money and received a rapid payout, which encouraged her to solicit additional investments from friends, family, and clients.
Between April and December 2022, approximately $25 million was deposited into her trust account. She allegedly disbursed investor funds directly to a co-accused company the same day she received them, bypassing proper legal safeguards. The tribunal found evidence that new investor money was being used to pay earlier participants — a hallmark of a Ponzi scheme.
The alleged scheme also involves Halton Regional Police Sgt. Jon Williams, an 18-year veteran who was suspended with pay in March 2025, and Douglas Grozelle, a former musician. Both are facing charges of fraud. Reports indicate that more than a dozen Halton police officers invested, with some profiting while others sustained heavy losses.
Tribunal findings show Masterson created promotional materials for the scheme, assuring potential investors that there had been “zero defaults” over several years — despite loans already failing at the time. She is also accused of receiving undisclosed finder’s fees for recruiting new participants.
At least nine individuals are still owed nearly $9 million, and Masterson is a defendant in multiple civil lawsuits connected to the alleged scheme. While she has reimbursed some investors, tribunal members found she posed an ongoing risk to the public if allowed to continue practicing law.
If allegations are proven, Masterson could face a lengthy suspension or permanent revocation of her licence. The Law Society’s investigation remains ongoing.
