Mississauga-based iPro Realty Ltd. has officially closed its doors after regulators uncovered millions of dollars allegedly misappropriated from consumer and commission trust accounts, leaving thousands of real estate agents scrambling to secure new brokerage ties.
The Real Estate Council of Ontario (RECO), which oversees real estate professionals in the province, confirmed that while Peel police have been contacted, a criminal probe “has not yet commenced.” For now, the matter remains under RECO’s regulatory authority, though the Fraud Bureau may initiate a criminal investigation once a full briefing is received.
iPro, which employed roughly 2,400 agents across 17 Ontario offices including Mississauga, Brampton, Toronto, and Milton, was ordered shut on Aug. 19. To protect registrations, RECO has arranged for iCloud Realty Ltd. to take on iPro’s locations and agents who wish to transfer. Transfer fees will be waived or reimbursed, and group transfers are being facilitated to ease the administrative burden.
According to RECO registrar Joseph Richer, a routine inspection uncovered a significant shortfall in iPro’s accounts earlier this year. The brokerage initially disclosed a $10.5 million deficit, which has since been reduced to under $8 million after some assets were liquidated and proceeds returned to the trust accounts. Richer called the misappropriation “a serious breach of the law by the owners of iPro,” noting they will no longer be eligible for registration.
RECO has appointed a new broker of record and a chartered public accountant to finalize the financial review and determine the impact on consumers and agents. An update is expected no later than Sept. 5. In the meantime, RECO says its priority is to recover as much of the missing trust money as possible to protect clients and agents caught up in the collapse.