Multiple real estate firms in Mississauga and Brampton have had their accounts frozen after investigations found that about $2.7 million in client funds were improperly used to cover expenses, according to Ontario’s real estate council.
The Real Estate Council of Ontario announced regulatory measures against four Save Max brokerages along with two individuals from Mississauga and Brampton, which include immediate suspensions and account freezes, as stated in a release on Tuesday.
This investigation started after a complaint was lodged with the board back in December 2024, leading the RECO to uncover that $2.7 million was “disbursed unlawfully” from four brokerage trust accounts.
The money, meant for real estate transactions, was instead utilized for loan repayments, property management fees, taxes, credit card debts, and vendor services, according to the board.
The board described these actions as “clear and repeated breaches” of the Trust in Real Estate Services Act, adding that “both consumers and approximately 400 registrants involved with the identified brokerages will be affected by this matter.”
“Unlawfully disbursed funds were typically replaced before month-end when brokerages must complete a reconciliation of the Real Estate Trust Account,” noted the RECO.
The board identified Save Max Real Estate Inc., Save Max First Choice Real Estate Inc., Save Max Supreme Real Estate Inc., and Save Max Ace Real Estate in its findings.
Individuals looking to retrieve their funds now need to go through the insurance claims process as per the board’s guidance.
“Freezing trust accounts is the strongest safeguard available to ensure that funds held in trust are protected and not accessed for purposes beyond those they are legally intended to serve,” stated the RECO.
Brampton broker Raman Dua and Nidhi Dua from Mississauga were also recognized as brokers associated with Save Max First Choice Real Estate Inc.
Dua mentioned he is “cooperating fully and proactively addressing each matter raised” via a social media post.
“There is currently a freeze on real estate transactions across our four brokerages pending the completion of regulatory proceedings,” Dua explained. “We understand this creates uncertainty, and we are working urgently to resolve these matters.”
“We are committed to resolving this matter transparently and restoring your trust,” his post read.
This regulatory action follows inspections, investigations, and an independent forensic review of financial records. In addition to account freezes, Peel Regional Police have been informed about these findings by the board.
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The board identified Save Max Real Estate Inc., Save Max First Choice Real Estate Inc., Save Max Supreme Real Estate Inc., and Save Max Ace Real Estate in its findings.
Individuals looking to retrieve their funds now need to go through the insurance claims process as per the board’s guidance.
“Freezing trust accounts is the strongest safeguard available to ensure that funds held in trust are protected and not accessed for purposes beyond those they are legally intended to serve,” stated the RECO.
Brampton broker Raman Dua and Nidhi Dua from Mississauga were also recognized as brokers associated with Save Max First Choice Real Estate Inc.
Dua mentioned he is “cooperating fully and proactively addressing each matter raised” via a social media post.
“There is currently a freeze on real estate transactions across our four brokerages pending the completion of regulatory proceedings,” Dua explained. “We understand this creates uncertainty, and we are working urgently to resolve these matters.”
“We are committed to resolving this matter transparently and restoring your trust,” his post read.
This regulatory action follows inspections, investigations, and an independent forensic review of financial records. In addition to account freezes, Peel Regional Police have been informed about these findings by the board.
Last 30 Days: 82,483 Votes
All Time: 1,212,743 Votes
1319 VOTES
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