August 19, 2025
RED FM News Desk
A major controversy has rocked the Greater Toronto Area’s real estate sector as industry leaders demand an immediate police investigation into the disappearance of nearly $8 million from iPro Realty’s trust accounts. The issue came to light when the Real Estate Council of Ontario (RECO) announced on August 14 that all iPro Realty offices would be shut down by August 19.
Initially, RECO reported a $10 million shortfall from iPro’s commission and client deposit trust accounts, later revising the missing amount to $8 million after some funds were recovered.
Steve Tabrizi, Chief Operating Officer at RE/MAX Hallmark, expressed serious concerns, stating that in previous cases involving public funds, police were involved from the outset. “This case should be no different — police should’ve stepped in right away,” he said.
RECO, however, is still conducting its own internal investigation and has said that police may be brought in once that process is complete. But many real estate professionals, lawyers, and mortgage agents argue that law enforcement should have been involved from day one.
Amidst the growing chaos, iPro Realty’s co-founders emailed staff informing them of a new brokerage, iCloud Realty, which they claimed would continue operations using the same offices, phone numbers, and software. Agents were given the choice to join iCloud, and RECO facilitated a bulk registration transfer to avoid disruptions in service.
RECO has clarified that iCloud Realty — incorporated on July 22, 2025 — is a separate legal entity, with different registered owners. The licenses of iPro’s co-founders, Rui Alves and Fedele Colucci, have been revoked. Still, the regulator has yet to explain exactly how or where the $8 million disappeared.
Ken McLachlan, CEO of RE/MAX Hallmark, criticized RECO’s audit procedures, saying that regular, unannounced inspections should be standard to prevent such crises. “If brokerages are warned in advance, of course they tidy things up,” he said.
Mortgage broker Ron Butler also questioned RECO’s delay, noting that if the regulator discovered the financial shortfall at the end of May, then allowing iPro to continue operating until mid-August was unacceptable. “Consumers and agents were still doing business with a company under financial misconduct,” he said.
This case has raised serious questions about the oversight and transparency within Ontario’s real estate regulation system. Many leaders are now calling on RECO to reform its procedures — and agree that the absence of immediate police involvement was a major oversight that cannot be ignored.
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