Court appoints receiver for 2 B.C. real estate firms accused of ‘serious’ mismanagement of trust accounts

A for-rent and a for-sale sign are displayed on a house in a new housing development in Ottawa on Friday, Oct. 14, 2022. (Sean Kilpatrick / The Canadian Press)

Two companies associated with suspended real estate agent Balpreet Singh Bal have had a receiver appointed to manage their trust accounts, according to B.C.’s real estate regulator.

Jovi Realty and Lighthouse Realty Ltd. each had their accounts frozen last year amid a B.C. Financial Services Authority investigation into Bal, who the regulator has accused of a variety of financial misconduct relating to four different companies, including Jovi and Lighthouse.

The allegations against Bal have not been proven. The BCFSA has nevertheless issued orders suspending his licence and those of associated brokerages, as well as freezing accounts, based on “prima facie” (“on its face”) evidence of wrongdoing.

The B.C. Supreme Court appointed D. Manning and Associates Inc. to take control of Jovi and Lighthouse’s frozen trust accounts on April 2, according to the BCFSA, which issued a news release and a consumer alert about the decision earlier this week.

The regulator says the frozen accounts “may include funds held on behalf of consumers, such as rental income, security deposits, other client monies or licensee commissions.”

The court-appointed receiver will assess claims from parties who may be entitled to funds in the accounts and will “review, reconcile and distribute trust funds in accordance with legal and statutory requirements,” the BCFSA says.

“Receivership provides a centralized, court-supervised process to ensure trust funds are properly accounted for and distributed fairly,” says Chris Biscoe, the BCFSA’s director for “compliance and enforcement legal,” in the regulator’s release.

“This is a rare regulatory step and is pursued in circumstances, like these, where evidence points to serious concerns about the management of trust funds.”

The release does not go into detail about the allegations against Bal or his alleged misuse of the trust accounts at Jovi and Lighthouse.

The regulator says its investigations into Bal and the companies are ongoing, and adds that it “may pursue enforcement action where warranted” when they are complete.

Previous decisions published by the BCFSA, however, offer some insight into the alleged misconduct under investigation.

‘Trying to distance himself’

According to BCFSA hearing officer Gareth Reeves’ November 2025 decision on suspending the licences of Jovi, Lighthouse and their managing brokers, Bal has claimed to the regulator that he is “no longer involved” with either company.

Corporate records show Bal became the sole director of both companies in April 2024, and he ceased being a director of both companies on Nov. 4, 2025.

Replacing Bal as the sole director of both companies was Parminder Sondhi, whose address listed in corporate records is the same as Jovi’s Vancouver address.

Reeves’ decision noted that the transfer to Sondhi—whose name is redacted in the document—“appears to have been precipitated by the previous orders” against Bal by the BCFSA.

“It makes it appear as if Mr. Bal may be trying to distance himself from Jovi and Lighthouse somewhat precipitously,” the document reads.

“He also appears to intend to maintain some control over Jovi and Lighthouse, as evidenced by the fact that he has entrusted Jovi with $2,750,000 in funds that should be held in trust and that Mr. Bal, despite not being a director of Jovi, plans to direct their payment to his counsel. This suggests that Mr. Bal’s divestment might not be entire and that he may retain some beneficial interest or other form of influence over Jovi and Lighthouse.”

Notably, on Nov. 8, 2025, the registered office address for both Jovi and Lighthouse was changed to a residential property on 148 Street in Surrey. The address matches one identified in court documents as Bal’s personal home.

Funds ‘egregiously misused’

According to Reeves’ decision, “Director 1”—whose name is redacted, but who is likely Sondhi—met with investigators on Nov. 5, 2025 and provided “several bank statements” for the two companies that he said were provided to him by Bal.

These statements did not match bank statements provided by a chartered professional accountant who was made a signatory on both companies’ accounts on Nov. 12, 2025.

The Bal-provided statements did not match the accountant’s statements, according to Reeves’ decision. As an example, the hearing officer notes that Bal’s statements claimed a closing balance in Jovi’s trading trust account of more than $1.9 million in August 2025. In fact, the account had just $7,049.19 in it.

Director 1 told investigators he was unaware that the Bal-provided statements were inaccurate.

The accountant’s statements also revealed millions of dollars worth of transfers into Jovi’s and Lighthouse’s accounts from a California company known as M&M Property Services & Management and formerly known as Bruce Mills Realtor Inc., after the BCFSA issued its initial orders against Bal last year.

Bal was the CEO of Bruce Mills, according to Reeves’ decision, which does not specify when he took on that title, nor when he ceased to hold it.

“Looking at the accounts in general, it appears that substantial trust funds were moved out of Jovi’s and Lighthouse’s trust accounts between Aug. 1, 2025 to Oct. 31, 2025 and then the accounts were replenished from time to time, at least in part by transfers from Bruce Mills, to keep the accounts in a position to meet their ongoing obligations,” Reeves’ decision reads.

“The evidence establishes a strong prima facie case that Jovi’s and Lighthouse’s trust account have been egregiously misused.”

Importantly, a prima facie case is not the same as proof that the alleged misconduct occurred. The BCFSA’s allegations against Bal, Jovi, Lighthouse and all of the other parties remain unproven, and Bal’s lawyer has previously told CTV News his client is “fully co-operating” with the regulator’s investigation.

Advice for clients

The BCFSA says the appointment of a receiver marks the end of the regulator’s direct administration of the frozen accounts. It encourages people who may be entitled to funds held by Jovi or Lighthouse to consult its consumer alert.

“This process is complex and may take time,” the alert reads. “The receiver will contact affected parties directly regarding next steps. BCFSA will work closely with the receiver throughout the process and will provide updates to those impacted, as appropriate.”

For day-to-day property management and transaction-related questions, clients of Jovi and Lighthouse should continue to work with their usual contacts, the BCFSA says.

“Questions about trust fund distribution will be addressed through the receiver as the court-supervised process unfolds,” it adds.