Retired Toronto lawyer charged with fraud after allegedly keeping client funds
A retired Toronto lawyer, Ping-Teng Tan, is facing charges of fraud and money laundering following accusations from clients that he failed to deliver their money. CBC Toronto initially reported on the allegations against Tan last summer. Two clients of Tan were awaiting payment of over $1 million collectively from the sale of a business and a residential property. Despite court orders for Tan to pay them, the clients have not received any money nine months later.
York Regional Police recently charged Tan with two counts of fraud over $5,000, two counts of possession of property obtained by crime, and money laundering. Police suspect there may be more victims involved. Tan has not responded to requests for comment, and his law firm email and phone number are inactive.
One of Tan’s former clients, Xiaolong Zhang, expressed relief upon learning of Tan’s fraud charges. Zhang and his wife hired Tan in 2023 to oversee the sale of their auto parts distribution business but never received the $517,000 in proceeds owed to them. The funds were paid to Tan’s law firm’s trust account, and despite a court order, they have not been reimbursed.
Zhang’s experience with Tan has left him disillusioned with the civil court process and disappointed with the Law Society of Ontario’s compensation fund. Tan has no assets to recover funds from, so Zhang must rely on the compensation fund for restitution. However, the process can take over two years, causing additional financial and emotional strain.
The Law Society of Ontario suspended Tan’s license last April, citing a risk to the public. While a disciplinary hearing has not been scheduled, Tan can contest allegations of misappropriation at the hearing. The compensation fund granted 75 claims involving lawyers last year, totaling approximately $2.6 million.
As Zhang awaits a decision on his claim, he is contemplating selling his house but is hesitant to trust another lawyer. The uncertainty surrounding his financial situation has left him anxious about his future. Despite the challenges he faces, Zhang remains hopeful for justice and restitution.
