What you've described certainly sounds like an offence under the Criminal Code, namely:
332. (1) Every one commits theft who, having received, either solely or jointly with another person, money or valuable security or a power of attorney for the sale of real or personal property, with a direction that the money or a part of it, or the proceeds or a part of the proceeds of the security or the property shall be applied to a purpose or paid to a person specified in the direction, fraudulently and contrary to the direction applies to any other purpose or pays to any other person the money or proceeds or any part of it.
Accordingly, your client may be charged under this section or Fraud Over $5000 or Theft Over $5000 depending on the circumstances.
Hopefully that is of assistance.
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