The Law Society of Ontario has ruled that former police officer turned lawyer Ganesh Balaganthan engaged in professional misconduct by turning a blind eye to a fraudulent $1.7-million transaction linked to stolen municipal funds.
The Law Society of Ontario has concluded that Toronto lawyer and former police officer Ganesh Balaganthan engaged in professional misconduct by “knowingly” assisting in a $1.7-million money laundering scheme.
Balaganthan, who left the Toronto Police Service after 14 years to begin practising law in 2018, was retained in 2019 by a client involved in what was presented as a share purchase deal. The funds—later determined to have been stolen from the City of Surrey through a phishing scam—were transferred into his newly opened trust account.
According to the tribunal, Balaganthan drafted a joint venture agreement for several parties claiming to buy shares in an Ontario corporation. More than $1.7 million flowed into his account, but there was never any intention to close the deal. At his client’s direction, Balaganthan attempted to redistribute the funds to companies in Hong Kong and Dubai, triggering bank scrutiny and an investigation.
Although Balaganthan cooperated once the scheme was uncovered, the tribunal found he had failed to make reasonable inquiries into the purpose of his retainer or the identity of his client. While the panel acknowledged the lawyer was under extraordinary personal stress due to his children’s serious health conditions, it concluded he was still aware that the transactions were suspicious.
The stolen funds were largely recovered, but $78,000 remained missing as of early 2024. A separate penalty hearing will determine potential sanctions against Balaganthan, who earned only $1,500 in fees from the matter.
The case is part of a troubling pattern of municipal frauds across Canada, with more than $10 million in public funds reported stolen since 2019.
