OPP investigating iPro Realty amid scandal over use of funds

A sign outside an iPro Realty office. (CTV News)

Ontario Provincial Police have launched an investigation into iPro Realty, the latest controversy to hit to the embattled company after a multi-million dollar shortfall.

In a statement to CP24, OPP Sgt. Erin Cranton confirmed an investigation into the Mississauga-based brokerage has been opened.

“The OPP has been asked to investigate this matter,” Cranton said.

“To protect the integrity of the investigation, we are unable to provide further details at this time.”

• READ MORE: Ford government threatens to take control of real estate watchdog as realtors call for answers

This is just the latest development in a saga that started in May, when a Real Estate Council of Ontario (RECO) investigation found that iPro’s co-founders had used about $8 million from trust accounts that were meant to be used for down payments and realtor commissions to instead pay for operating expenses and give payments to investors.

Despite that, RECO didn’t charge or fine the brokerage, according to posted documents.

The company’s trust account continued to operate for four months afterwards.

Eventually, in August, RECO froze iPro’s funding as it commenced a comprehensive audit into the brokerage through a law firm.

Peel Regional Police had previously confirmed to CTV News Toronto that RECO contacted them on Aug. 15 to notify their fraud bureau of its ongoing investigation into the “potential improprieties.”

“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,” Const. Tyler Bell-Morena said in an emailed statement last month.

The Ontario government has threatened to intervene and take over RECO if the audit doesn’t get to the bottom of how the funds were misappropriated.

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

With files from CTV News Toronto’s Alex Arsenych and Jon Woodward