OPP now probing iPro Realty after agency ordered to close, assets frozen

Provincial police say they have launched an investigation into a well-known Ontario real estate agency, which has been ordered to close, had its accounts frozen and sparked government intervention.

Ontario Provincial Police confirmed to Global News they were investigating iPro Realty Ltd., which was ordered by its regulator to close after shortfalls with its consumer deposit were uncovered, forcing 2,400 agents to seek new brokerages.

“The OPP has been asked to investigate this matter,” an OPP spokesperson told Global News. “To protect the integrity of the investigation, we are unable to provide further details at this time.”

Last month, the Real Estate Council of Ontario (RECO) said it had instructed iPro Realty to close and had frozen its accounts.

The regular said it uncovered shortfalls in iPro’s consumer deposit and commission trust accounts of approximately $10.5 million, calling it a “serious breach” of the agency’s responsibilities under the law and to its customers and agents.

Dentons Canada LLP was hired to oversee iPro’s wind-up. The firm was also tapped to ensure oversight for remaining iPro transactions, as well as to provide forensic audit services.

After the issues were revealed, Minister of Public and Business Service Delivery and Procurement Stephen Crawford ordered RECO to expand its audit to look at RECO itself and threatened to appoint an administrator if he was not satisfied with the investigation.

“After my ministry and I have had the opportunity to review the final report, the findings of the audit will be communicated with the public,” he wrote in a letter to RECO.

Kate Steinfeld, the chair of the RECO board, said her agency would work on transparency.

“We appreciate that the Minister has set out clear expectations for how the important work of the independent comprehensive audit is to be conducted,” she wrote in a statement.

“The RECO Board will do everything in its power to protect the rights, deposits and commissions of the affected homeowners, agents, and brokerages, to reinforce public confidence in the sector, and to ensure that RECO emerges as a more transparent organization and with enhanced consumer protection measures in place.”

— with files from Global News’ Aaron D’Andrea