Ontario’s real estate regulator has taken its fight to court in an effort to recover millions of dollars in missing consumer deposits and commissions linked to iPro Realty.
The Real Estate Council of Ontario (RECO) announced it has filed a notice of application with the Ontario Superior Court of Justice, asking for an order to freeze the assets of iPro Realty and its former principals. The regulator is also seeking authority to trace the flow of funds it says were diverted from trust accounts and return them to where they belong.
RECO closed down iPro in August after uncovering what it called a “significant shortfall” in trust accounts. The regulator initially estimated the gap at $10 million but later revised the figure to less than $8 million.
Before its closure, iPro was one of the province’s largest brokerages, operating 17 offices, including two in Mississauga and three in Toronto. About 2,400 real estate agents were registered under its banner.
“Consumers and agents placed their trust in iPro, and that trust was violated,” RECO Chair Katie Steinfeld said in a statement. “RECO is committed to seeking justice for affected agents and consumers by using all available remedies to recover the funds that should have remained in trust.”
According to RECO, the brokerage’s former leaders, along with other parties, orchestrated a scheme that systematically diverted and misused money from consumer deposits and agent commissions.
Global law firm Dentons Canada LLP is conducting an independent audit of iPro’s finances and is expected to release an interim report by the end of September.
Peel Regional Police confirmed they were notified on August 15 but said the investigation remains under RECO’s jurisdiction at this stage.
RECO said the court application marks an important step toward holding those responsible accountable. “Our priority remains protecting Ontario consumers and registrants, ensuring accountability, and restoring confidence in the real estate sector,” the regulator stated.
