An update on the iPro Realty scandal

More details have emerged about the iPro Realty Inc. scandal.

As we wrote in our last issue of PayProp Insights Canada, iPro Realty, one of Ontario’s largest brokerages, shut down all 17 of its offices on August 19 after regulators uncovered millions missing from its trust accounts.

Initially reported at $10.5 million, the shortfall is now closer to $6.5 million following the sale of the brokerage’s assets to iCloud Realty.

New evidence filed by the Real Estate Council of Ontario (RECO) allege that iPro’s founders “systematically misused trust funds” by moving them into operating accounts, related companies, and possibly themselves and associates.

Findings from more than 700 pages of affidavits detail that roughly $30 million in client funds that should have been held securely in trust accounts was instead diverted via electronic transfers, cheques, or deposited into unknown accounts.

As the case develops, RECO has secured court orders freezing the personal assets of iPro’s founders.

Platforms like PayProp enforce strict separation of client and business funds, making transparency and accountability automatic, and keeping property managers compliant and trustworthy.

More regulation headlines

Agents say tax payments are missing as iPro Realty collapse fallout continues – The Globe and Mail

Ontario landlords could be liable for drug activity under new law – PayProp blog

Tenant advocates say Toronto's new renoviction bylaw already making 'positive impact' – Sudbury News