The i Pro Realty situation has taken over the real estate scene in Ontario after a reported $8-million gap in deposit and commission funds from the company’s trust accounts.
i Pro Realty Inc. – which had 17 branches, including two in Mississauga and three in Toronto, and employed about 2,400 agents – was ordered to shut down as of Tuesday, Aug. 19, due to an alleged violation of the Trust in Real Estate Services Act.
The police investigation is the latest twist in a story that began in May when a RECO investigation revealed that i Pro’s co-founders had misused money from trust accounts intended for down payments and realtor commissions to cover operating costs and make payments to investors.
Here’s a timeline of events leading up to the investigation:
“This is a serious breach of i Pro’s responsibilities under the law and to its consumers and agents,”said RECO in its statement.This organization holds legal authority to charge or fine brokerage owners for violations but did not impose any charges or fines here.Pursuant to their release,, they finalized an agreement with i Pro Realty Ltd. regarding its closure effective Aug. 19. The amount now under scrutiny was adjusted downwards from $10.5 million to $8 million according to reports by The Toronto Star. Co-owners’ licenses revoked – Aug. 19 Richter confirmed to Metroland Media that both Alves and co-owner Fedele Colucci would have their registrations terminated by day’s end; they will be barred from seeking registration again or engaging in any trading activities. Alves and Colucci can voluntarily terminate their licenses if they choose.Employees moved to i Cloud Realty – Aug.21
Shortly after the announcement about i Pro , RECO facilitated transferring around 2 ,400 employees into newly formed i Cloud Realty. According To The Star , Reco stated It Had Been In Communication With Peel Regional Police And Would Fully Cooperate With Any Ongoing Investigation.
<
RECO report – November 2022
“Specifically, RECO has never performed a full on-site inspection at 27 per cent of registered brokerages, and has not conducted a full on-site inspection at a further 35 per cent of brokerages in more than five years,” the report stated. According to RECO’s website, it is a not-for-profit organization that oversees real estate agents and brokerages throughout the province. Its goal is to protect consumers by making sure real estate agents and brokerages follow the law. Regular inspections are typical for real estate agencies, with RECO stating it conducts over 1,000 brokerage inspections each year. The auditor general report also mentioned that there isn’t any process at RECO ensuring investigators “take appropriate action based on the findings of their investigative work.”i Pro co-owner resigns – May 2023
RECO notifies i Pro Realty about an upcoming inspection or audit of its financial accounts. During this examination of i Pro Realty’s consumer deposit and commission trust accounts, RECO claimed it initially discovered more than $10 million had allegedly been “illegally disbursed.”Formation of i Cloud Realty – Aug. 8
Before any official word about May’s findings from i Pro Realty’s inspection came out, another company named i Cloud Realty registered with RECO. “i Cloud is registered as a brokerage with RECO on Aug. 8, 2025, under different ownership from i Pro and has acquired some assets from i Pro while taking over certain leases,” former RECO registrar Joseph Richer said in an email to Metroland Media. “There has been no transfer of ownership from i Pro to i Cloud.”Rebranding as i Cloud Realty – Aug. 14
The Toronto Star reported that Alves presented a slideshow during a virtual meeting with company agents discussing the company’s future where he announced it was being rebranded as i Cloud Realty after being bought.“This is a serious breach of i Pro’s responsibilities under the law and to its consumers and agents,”said RECO in its statement.This organization holds legal authority to charge or fine brokerage owners for violations but did not impose any charges or fines here.Pursuant to their release,, they finalized an agreement with i Pro Realty Ltd. regarding its closure effective Aug. 19. The amount now under scrutiny was adjusted downwards from $10.5 million to $8 million according to reports by The Toronto Star. Co-owners’ licenses revoked – Aug. 19 Richter confirmed to Metroland Media that both Alves and co-owner Fedele Colucci would have their registrations terminated by day’s end; they will be barred from seeking registration again or engaging in any trading activities. Alves and Colucci can voluntarily terminate their licenses if they choose.
Employees moved to i Cloud Realty – Aug.21
Shortly after the announcement about i Pro , RECO facilitated transferring around 2 ,400 employees into newly formed i Cloud Realty. According To The Star , Reco stated It Had Been In Communication With Peel Regional Police And Would Fully Cooperate With Any Ongoing Investigation.
Richer Departs From Reco – August.22
Brenda Buchanan , CEO Of Reco Announced That Richer Had Left The Organization Stating She Is Committed To Working Closely With Reco’S Board To Ensure Transparency , Oversight And Accountability Regarding This Issue Which Remains Her Top Priority ; The Toronto Star Reports That Richer Had Arranged A Deal With Ipro Co-Owners Alves And Colucci Allowing Them To Evade Disciplinary Actions.
Ipro Accounts Frozen – August.25
Reco Shared That All Accounts Associated With Ipro Were Being Frozen “To Safeguard Funds And Secure Business Operations.” For Clients With Pending Transactions All Such Transactions Would Be Processed Through Claims Pro LP Insurance Adjusters For Professional Liability Policies Administered By Reco ; Additionally , The Board Hired Legal Firm Dentons Canada LLP For An Independent Audit Review Including A Look At Previous Agreements Made By Former Registrars.
Government Intervention – August.28 ,29
Minister Stephen Crawford Representing Ontario Public And Business Service Delivery Confirmed Through A Spokesperson He’d Step Into The Rec O Investigation
“Details About This Government Intervention Are Expected To Be Released As A Ministerial Letter Next Week,” Said Crawford’S Press Secretary Liam Maloney In An Article By Star ; “We Appreciate That The Minister Has Set Clear Expectations On How Important Work Should Be Conducted During Independent Comprehensive Audit,” Noted Katie Steinfeld Chairperson Of Rec O Board In Their Release On August.29
“The Rec O Board Will Do Everything Possible To Protect Rights , Deposits And Commissions Belonging To Homeowners , Agents And Brokerages While Reinforcing Public Confidence Within The Sector As Well As Ensuring Transparency Improvements Alongside Enhanced Consumer Protection Measures.”
IPRO Agents Stage Protest At REC HQ – September.02More Than A Dozen Of Ipro Agents Gathered Outside REC HQ Holding Signs Demanding Immediate Payment Of Lost Commissions.
Ipro Accounts Frozen – August.25
Reco Shared That All Accounts Associated With Ipro Were Being Frozen “To Safeguard Funds And Secure Business Operations.” For Clients With Pending Transactions All Such Transactions Would Be Processed Through Claims Pro LP Insurance Adjusters For Professional Liability Policies Administered By Reco ; Additionally , The Board Hired Legal Firm Dentons Canada LLP For An Independent Audit Review Including A Look At Previous Agreements Made By Former Registrars.
Government Intervention – August.28 ,29
Minister Stephen Crawford Representing Ontario Public And Business Service Delivery Confirmed Through A Spokesperson He’d Step Into The Rec O Investigation
“Details About This Government Intervention Are Expected To Be Released As A Ministerial Letter Next Week,” Said Crawford’S Press Secretary Liam Maloney In An Article By Star ; “We Appreciate That The Minister Has Set Clear Expectations On How Important Work Should Be Conducted During Independent Comprehensive Audit,” Noted Katie Steinfeld Chairperson Of Rec O Board In Their Release On August.29
“The Rec O Board Will Do Everything Possible To Protect Rights , Deposits And Commissions Belonging To Homeowners , Agents And Brokerages While Reinforcing Public Confidence Within The Sector As Well As Ensuring Transparency Improvements Alongside Enhanced Consumer Protection Measures.”
IPRO Agents Stage Protest At REC HQ – September.02More Than A Dozen Of Ipro Agents Gathered Outside REC HQ Holding Signs Demanding Immediate Payment Of Lost Commissions.
IPRO Agents Stage Protest At REC HQ – September.02More Than A Dozen Of Ipro Agents Gathered Outside REC HQ Holding Signs Demanding Immediate Payment Of Lost Commissions.
A Group Of Former Ipro Real Estate Agents Display Signs During A Protest Outside The Offices Of The Real Estate Council Of Ontario On September.02.
Andrew Palamarchuk/MetrolandSecurity Personnel Positioned Outside Prevent Entry For Agents Seeking Answers Inside.
<
OPP Confirms Ongoing Investigation – September.02 (In reference) same date police clarify they’ve commenced investigations surrounding Ipro operation ; Officer Erin Cranton shared details via E-mail correspondence September… stating They Received Notifications From Ministry Regarding Issues Pertaining TO Ip Ro.. “Inquiries Have Now Been Assigned To Anti-Rackets Branch ” Cranton Said Following Subsequent Correspondence Dated Four Days Later ”As These Investigations Are Just Beginning We’re Unable Provide Additional Comments Right Now.” <H4 DEMAND FOR INCREASED OVERSIGHT ON. REC – September.03
The Current Situation Seen At Ip R Is Not Unique-It Mirrors Other Instances Where Brokers Managed To Negotiate Favorable Terms With Regulators Avoiding More Severe Punishments Despite Engaging In Unethical Activities,” Letter Highlights ; “(There’s) More Work Required During Final Phase Implementation Trust Services Act (Tresa) Close Dangerous Loopholes Improve Training & Strengthen Consumer Protections Oversight.” President Cathy Polan stated “Given Circumstances Affecting Over Two Thousand Hardworking Individuals Within Ontario Real Estate Community Urging Government Enforcement Subjecting REC Oversight Increasing Accountability Both Registrants Consumers.”
<h4 AGENTS RECEIVE INSURANCE PAYOUTS-SEPTEMBER05<h4 NEXT STEPS<h4 INDEPENDENT AUDIT SCHEDULED FOR SEPTEMBER30<h4 FINAL REPORT OF AUDIT EXPECTED BY THE BOARD ON OCTOBER30 With Contributions From Andrew Palamarchuk
Source link
