Ontario’s real estate watchdog is seeking a court injunction that would freeze the assets of iPro Realty and its former principals as it continues to probe an alleged multimillion-dollar shortfall involving the brokerage.
The Real Estate Council of Ontario (RECO) says it has filed a notice of application with the Ontario Superior Court of Justice seeking a “freeze of assets” and is further requesting a court order that will permit it to “trace the flow of trust funds that were diverted and return them to the trust accounts from which they were taken.”
RECO shuttered iPro back in August due to what it said was a “significant shortfall” of $10 million in commission and consumer deposit trust accounts. However, RECO later said that the figure for the missing money is believed to be less than $8 million.
iPro operated 17 branches, including two in Mississauga and three in Toronto, and had roughly 2,400 agents.
“Consumers and agents placed their trust in iPro, and that trust was violated. 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,” RECO Chair Katie Steinfeld said in a news release issued on Friday detailing the legal action.
RECO has alleged that “iPro’s former principals and other parties orchestrated and executed a trust scheme involving the systematic diversion, removal and misuse of consumer deposit and agent commissions held in trust on their behalf.”
Dentons Canada LLP is conducting an independent audit into iPro Realty and is expected to release an interim report by the end of this month.
Peel police previously said that while it was notified of the matter on Aug. 15, the investigation remains under RECO’s purview at this time.
In the news release on Friday, RECO said that the latest legal step sets out a “clear path toward recovering funds that were diverted or removed from trust.”
“RECO’s priority remains protecting Ontario consumers and registrants, ensuring accountability, and restoring confidence in the real estate sector,” the release states.
CTV News Toronto has reached out to iPro for comment on the allegations previously but has not received a response.
