**Title: Burlington Lawyer Suspended Amid $25M Ponzi Scheme Investigation**

The Law Society of Ontario has suspended the license of Crystal Diane Masterson, a 40-year-old lawyer from Burlington, as it investigates her alleged involvement in a Ponzi scheme that reportedly funneled $25 million through her trust account. Masterson notified the society in March that she had been charged with fraud exceeding $5,000.

The Law Society Tribunal issued the suspension on September 10, citing serious concerns regarding Masterson's integrity and trustworthiness. The tribunal's decision noted that two co-accused individuals have also been charged in connection with the case.

Masterson, who was called to the bar in 2013 and primarily practices real estate law, learned about the purported investments from a friend, who is now a co-accused and was believed to be a mortgage broker. According to the tribunal, she was informed that the investments involved unsecured loans for private bridge financing and equipment financing, secured by a wealthy businessman who had vetted the borrowers.

In a related development, Halton Regional Police Sgt. Jon Williams was charged by the Ontario Provincial Police this spring in connection with the fraud. Williams, an 18-year veteran of the force, has been suspended with pay since March. Another co-accused, Douglas Grozelle, a former member of the punk band Trunk, is also facing fraud charges. Reports indicate that Grozelle allegedly promised investors extraordinary returns, but most investments yielded no legitimate returns.

The tribunal's decision highlighted that Masterson did not conduct due diligence on the investments and relied solely on her friend's assurances. In April 2022, she invested $175,000 of her own money, which was returned with interest shortly after. Following this, she solicited funds from friends and family, many of whom were also her clients, to invest in the scheme.

The tribunal found that approximately 15 individuals, primarily clients and acquaintances, had their funds funneled through Masterson's trust account. The funds were reportedly disbursed immediately to her co-accused's company, unrelated to any legal services.

Masterson claimed she was under the impression that the loans were urgent and needed to be transferred immediately, which justified the use of her trust account. However, she has only partially repaid some investors, with about $9 million still owed to nine individuals or groups. Between April and December 2022, around $25 million was deposited into her trust account related to the investment scheme.

Concerns about the scheme began to surface for Masterson in late 2022 when payments from her co-accused started to arrive late. She did not suspect fraudulent activity until January 2023, when one co-accused's attorney sent her a letter promising a payment of $5.9 million that never materialized.

After the loans defaulted in November 2022, an investor approached Masterson about raising capital to buy out the investments. She created a brochure claiming that the pooled fund had experienced zero defaults over three years, despite the loans already being in default at that time.

Records indicate that Masterson may have used new investor funds to pay off earlier investors, a hallmark of Ponzi schemes. She is currently named in at least three civil lawsuits alleging that she solicited funds from clients while acting as their lawyer, misrepresented the investments, and deposited client funds into her trust account.

The investigation into Masterson's actions is still in its early stages. While she has cooperated, the tribunal noted that she has not provided many key documents, and some submitted documents contained inaccuracies, complicating the investigation. The tribunal concluded that there is a significant risk of harm to the public if Masterson's license is not suspended, citing evidence of potential criminal conduct and misuse of trust accounts.

If the allegations against her are substantiated, Masterson could face severe penalties, including a lengthy suspension or possible revocation of her license.