Update on ongoing civil proceedings and other iPro Realty matters

I shared an update earlier this week regarding the Insurance Program Manager’s confirmation that pro-rated payments of eligible commission protection claims are underway. This pro-rated payment of 50 per cent of eligible claims is an important first step. This first step doesn’t preclude additional payments as funds are recovered through current insurance and civil proceedings.

It is also critical that I update registrants on RECO’s civil action to seek recovery of funds that should have been held in trust by iPro Realty’s former principals. 

Let me be clear: the misuse of trust funds for personal purposes is unacceptable, and as the regulator, we will work tirelessly to ensure that trust accounts deliver what they are intended to deliver for consumers and registrants.

As you may know, RECO’s court filings allege that the former principals systematically misused trust funds, and these allegations form the basis of the civil proceedings now underway. We are aware of misinformation that has been circulated to affected registrants who are victims of the alleged trust scheme by iPro’s principals. We urge affected registrants to rely on official updates from RECO and the Insurance Program Manager rather than rumours and reports from other sources.

RECO filed its Notice of Application with the Ontario Superior Court of Justice (Commercial List) against iPro Realty’s former principals and other related parties in September 2025. These proceedings were commenced to pursue the recovery of consumer and registrant trust funds that were improperly taken from iPro Realty’s trust accounts.

The recovery of these trust funds through RECO’s civil action is another important avenue of potential recovery for insurance claimants who are victims of the iPro principals’ alleged trust scheme.

While the insurance limits and funds available in the frozen trust account will support the pro-rated commission claim payments, RECO will continue its court application to recover additional funds that were diverted from iPro trust accounts. This process takes time.

As outlined in the recent update from the Insurance Program Manager, Alternative Risk Services, the insurer is making pro-rated payments of 50 per cent of eligible commission protection claims. These payments will be made by the insurer in accordance with policy terms, including the applicable deductible and the $200,000 per-claimant limit, and are being administered to ensure equitable treatment of all claimants. This is the first step.

In August 2025, RECO took steps to safeguard remaining assets by issuing Freeze Orders in respect of iPro Realty’s accounts. It followed that action up by obtaining court orders to freeze the respondents’ assets, including iPro Realty’s accounts. These measures ensure that assets and funds cannot be accessed without court approval and provide a structured process for recovered funds to be returned to those who have suffered losses.

While the scope of this event is unprecedented, please be assured that RECO is actively engaged on all fronts to address the trust account shortfall and hold those responsible accountable for their actions.

As previously noted, we will provide another update on the progress we are making to recover funds through various means by January 12, 2026.

We are asking affected registrants to rely on the information we provide and the structured process we are involved in to ensure the best possible outcome under these very difficult circumstances.

We appreciate your patience as these processes continue and RECO remains committed to keeping affected registrants informed as developments occur in the civil proceedings and as recovery efforts progress.

Sincerely,

Jean Lépine
Administrator, Real Estate Council of Ontario