Ontario’s real estate watchdog is seeking an injunction from the province’s Superior Court to freeze the assets of iPro Realty and its co-founders in the wake of the brokerage’s $10.5-million shortfall from consumer and commission trust accounts.
The Real Estate Council of Ontario (RECO)‘s investigation of iPro Realty determined in May that co-founders Rui Alves, a former RECO board member, and Fedele Colucci “illegally disbursed” $10.5 million from the brokerage’s consumer deposit and commission trust accounts. Three months later, RECO facilitated the transfer of 2,400 iPro employees in 17 offices across Greater Toronto to iCloud Realty and struck a deal with co-founders that allowed both men to escape charges and fines. RECO has told the Star that the financial breach is the largest its office has ever investigated.
Alves and Colucci have not responded to previous requests for comment from the Star, and have yet to be reached for comment on the court filing.
RECO’s proceeding filed on Sept. 11 seeks the freeze of assets and requests the court’s order that will allow RECO to trace the flow of trust funds that were “diverted” and “return them to the trust accounts from which they were taken.”
“This was a serious breach of trust by iPro’s former leadership. Our commitment is to explore every available legal step to protect consumers and registrants, including pursuing recovery of these funds through the courts,” Brenda Buchanan, CEO of RECO, said in a written statement.
The injunction follows RECO launching a forensic audit of iPro, as well as an independent audit by Dentons Canada.
“RECO is fully co-operating with law enforcement to provide all necessary information in support of their investigations,” the release said. The Ontario Provincial Police launched an investigation last week.
