Watchdog to investigate ‘potential improprieties’ in accounts belonging to GTA real estate brokerage

A real estate sign is pictured in Vancouver, B.C., Tuesday, June, 12, 2018. THE CANADIAN PRESS Jonathan Hayward

Ontario’s real estate watchdog will conduct an investigation into a Toronto-area real estate brokerage after discovering a multi-million-dollar shortfall in its accounts, Peel Regional Police say.

Const. Tyler Bell-Morena confirmed to CTV News Toronto that the Real Estate Council of Ontario (RECO) contacted police on Aug. 15 to notify their fraud bureau of its ongoing investigation into the “potential improprieties” within Mississauga-based iPro Realty Ltd.

That same day, RECO announced it would be shuttering the brokerage by Tuesday due to a “significant shortfall” of $10 million in commission and consumer deposit trust accounts. That figure is now believed to be less than $8 million, RECO says.

“RECO has been in contact with Peel Regional Police and will cooperate with any investigation undertaken by law enforcement,” the council told CTV News Toronto Monday evening.

iPro had 17 branches, including two in Mississauga and three in Toronto, and employed roughly 2,400 agents.

• READ MORE: iPro Realty Ltd. shut down by Ontario’s real estate watchdog

Joseph Richer, RECO’s registrar, previously told CTV News Toronto that they were notified of iPro’s shortfall before a scheduled inspection of the brokerage’s accounts.

“The funds that were unaccounted for were to have been held in the consumer deposit and commission trust accounts, but we have not yet confirmed the number of consumers or agents affected,” Richer said said in a statement last week.

“This is a serious breach of iPro’s responsibilities under the law and to its consumers and agents.”

At this time, Peel Police say the investigation remains under RECO’s purview.

“Although a criminal investigation has not yet commenced, a referral from RECO to the police may occur in the future subject to the Fraud Bureau’s receipt of a full briefing with respect to RECO’s findings and available evidence to date,” Bell-Morena said in an emailed statement.

“An assessment of the information for criminal process suitability will then take place in line with the Fraud Bureau’s intake procedure.”

With files from CTV News Toronto’s Phil Tsekouras