The entire board of directors at RECO has been fired following the Ford government’s decision to take control of Ontario’s real estate regulator due to the iPro scandal.
The Real Estate Council of Ontario (RECO) confirmed to the Star on Monday that the board members “cease to hold office upon the appointment of the Administrator.”
The Ministry of Public and Business Service Delivery and Procurement, which oversees Ontario’s real estate regulator, appointed Jean Lépine to take control of the organization, giving him “exclusive right to exercise all the powers and perform all the duties of the board, officers, and members of RECO.”
Lépine’s appointment took effect Monday. It followed widespread concerns about the regulator’s ability to protect consumers from theft and fraud in the wake of the iPro Realty scandal, which saw the co-founders of one of Ontario’s largest brokerages strike a deal with RECO to evade charges and fines after they “illegally disbursed” more than $10 million from the company’s trust accounts, which held consumer deposits.
“To prevent serious harm to the interests of the public and consumers, I have determined that it is necessary to appoint an administrator to assume control of and responsibility for RECO, including all powers and duties of the board of directors, officers, and members of RECO,” wrote Stephen Crawford, minister of Public and Business Service Delivery and Procurement, which oversees RECO.
