Ontario’s real estate regulator has struck a deal with the co-founders of a GTA brokerage that misappropriated an unprecedented amount of money held in trust, the Real Estate Council of Ontario (RECO) confirmed to the Star on Thursday evening.
Neither Rui Alves nor Fedele Colucci, co-founders of iPro Realty, will be charged by the regulator in the wake of what was initially a $10.5-million shortfall in the company’s trust accounts, which held commission and buyer’s deposits, RECO told the Star by email.
“As part of its undertaking for the closure of iPro and the termination of Colucci and Alves registrations,” a RECO spokesperson wrote, “RECO’s Registrar agreed to not seek charges under his authority under the Provincial Offences Act, and to not take any further administrative action under the Trust in Real Estate Services Act, 2002.”
Industry veterans and RECO registrants told the Star they are appalled and concerned by the registrar’s decision, which seems to fly in the face of a recent Auditor General’s report that criticized the regulator for failing to effectively protect consumers.
“How?! How?!” said John Meehan, a former president of Toronto Regional Real Estate Board and brokerage owner. “I’m shocked. Hopefully, there will be some sort of disclosure as to how Joe (Richer, RECO’s registrar) arrived at that decision. We’re entitled to that as registrants. Members of the public are also entitled to that.”
On Thursday, RECO also confirmed to the Star by email that its investigation found Alves and Colucci “withdrew significant amounts of trust account monies in a very short period of time.” The regulator revised the amount of money missing to “less than $8 million” after “repayment by iPro’s owners of approximately $3 million following the sale of some of iPro’s assets.”
RECO updated the public profiles for Alves and Colucci on its website this week to indicate they “voluntarily terminated” their registration with the regulator.
The website notes that Alves entered an agreement to terminate his registration as a broker effective Aug. 19, 2025, and that he would never reapply for registration.
A brief “discipline history” summary notes that the termination stems from Alves’ “conduct as owner and officer” of iPro Realty.
“The brokerage illegally disbursed funds from the brokerage’s consumer deposit and commission trust accounts, in contravention of the Trust in Real Estate Services Act, 2002,” RECO’s website states.
RECO’s discipline history for Alves’ partner states, “Colucci illegally disbursed funds from the brokerage’s consumer deposit and commission trust accounts.”
In 2010, RECO’s investigation into the misappropriation of $500,000 landed former brokerage owner David Seto in jail for a year. In 2009, RECO quickly froze his company’s account, revoked his registration and fined him $200,000.
Industry veterans are puzzled that RECO is not using the full force of its powers to hold iPro’s founders accountable for their actions. RECO told the Star the iPro case represents the largest sum of misappropriated funds it has ever investigated.
“The entire RECO board should resign, and executives be terminated,” said Ron Butler, a mortgage broker.
“In what world can you steal $10 million and just agree to quit and we’ll let it go? We’re taking no further action on the theft of $10 million.”
On Aug. 14, RECO announced it was shuttering iPro’s branches by Aug. 19 due to a significant shortfall of $10.5 million in commission and deposit trust accounts. The regulator later admitted that it had known about the shortfall since “late May.”
RECO notified Peel police’s fraud bureau of its ongoing investigation into “potential improprieties” within iPro Realty. Richer said it may take several weeks to complete the investigation, at which point the case may go to the police.
Richer said that before May, the last audit of the brokerage happened in 2021.
Alves was on RECO’s board of directors for several years, departing in 2023, according to the regulator’s annual general meeting in May 2023.
RECO’s spokesperson said its registrar’s decision not to lay charges or pursue additional actions against Alves and Colucci does not stop police from looking into the matter.
RECO said it “will support any investigation.”
