The fallout of the iPro Realty Ltd. continues as the Real Estate Council of Ontario confirms registrar Joseph Richer is out of the organization.
In a statement to Real Estate Magazine, RECO CEO Brenda Buchanan said: “With the support of RECO’s board of directors, I have acted and effective August 22, 2025, Mr. Joseph Richer, the Registrar appointed under the Trust in Real Estate Services Act, 2002, has left RECO.”
“RECO took action to protect consumers and agents when issues arose with iPro Realty Ltd. RECO’s priority is to ensure that Ontarians can have confidence in the agents and brokerages they work with,” Buchanan added.
Buchanan said she has undertaken a review of this matter, and she is “committed to working closely with RECO’s board to provide transparency, oversight and accountability on this matter.”
“This is my top priority,” she said.
Mississauga-based iPro Realty shuttered its 17 branches on Tuesday after being found to have mishandled millions of dollars, affecting 2,400 Ontario agents.
The closure follows the discovery of a $10.5-million shortfall in the company’s consumer deposit and commission trust accounts during a scheduled inspection. The amount has since declined to less than $8 million, RECO has said.
Richer joined RECO in 2012. As registrar, his responsibilities included education, enforcement (complaints, audits, inspections, investigations), and regulatory policy.
Why now?
The news of Richer’s exit was made following RECO’s decision not to lay charges against iPro Realty’s co-founders, which is being highly scrutinized by the real estate community.
Prior to RECO’s announcement on Friday, Ottawa Real Estate Board (OREB) CEO Nicole Christy released a statement calling for “accountability and transparency” from RECO.
“When the public trust is breached, especially in a significant way, the consequences should be swift, significant and public,” she wrote.
While there are no iPro Realty offices or agents within OREB’s jurisdiction, OREB members and their clients may still be impacted if they are involved in transactions with iPro Realty, she noted.
Myers weighs in
In a statement provided to REM, Canadian Real Estate Association (CREA) CEO Janice Myers said, “We urge the regulator to be as transparent as possible in order to provide confidence to affected parties, as well as the public.”
“In Ontario, RECO has a legislated mandate that includes protecting consumers and their deposits. We hope that as RECO exercised its authority in this case, they centred the best interests of Ontario’s homesellers and buyers,” said Myers.
(UPDATE: This story was updated on Aug. 23 at 5:30 a.m. to include comments from Nicole Christy and Janice Myers. Further background information about Richer was also added).
Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.
Wow, REM is fast with the publishing of breaking news!
In 2010 David Seto stole 100k from his trust account and was revoked, got his accounts frozen, and was sentenced to 1 year in jail. Why was iPro allowed to steal 10 million and have a negotiated exit. This is a black eye for the industry. RECO is too soft on the 10% of the bad apples and it makes the 90% of us trying to run respectable business look bad.
Because the iPro owners used to be Reco directors & probably they were in close friendly relationships with current Reco leaders.
Obviously has friends in highnplaces. Wreaks of corruption!
There was definitely going to be a dirge, that it is for the guy who came to RECO from that business is not surprising. It should have happened years ago.
Unless Doug Ford and RECO ‘s board is looking for a scapegoat, the executove and directors all have to go. They still have a chairperson with a huge conflict of interest red flag – her husband and co-owner of her brokerage is the incoming president for the toronto regional real estate board.
They’ll probably end up on TRREB board together. I bet Dimichele will make that happen for his president-elect. Loyalty comes with rewards.
This is disgusting. Criminal charges of corruption against the whole board. The person overseeing should not be an active member. We need a separate ombudsman.
BS, I don’t think that would be caused to happen by any real estate board’s executive. The real estate boards though are not the issues here.
The issue is that RECO is a (now quasi) self-regulated, consumer protection agency with a stated conflict of interest provision which includes that none of its directors can simultaneously hold a position in another of the industry’s related organization’s. Spouses, particularly those with the same brokerage should logically fall into this requirement as not dealing with each other at arm’s length because of the appearance of a conflict of image.
There iis a lot of discussion in every media platform about the appearance of a conflict of interest between Rui Alves’ past, not current, but past directorship with RECO where the assumption is that he got a light repercussion from Richter because of that relationship, and if that this sure doesn’t help especially if proves to be true and RECO’s board knew all the facts when Ms. Steinfeld issued the August 14th statement..
I’ve been honoured to be in this industry for 47 years and now have been dishonoured by the conduct of these two scoundrels of Ipro and to add insult to injury by the horrific decision by Reco. I Am now ashamed and dumbfounded .We need to fix it.Our membership must now speak up!
You’re a class act, Danny.
Well Said. I have 39 years and Have Never been Ashamed of my Profession…Until Now. Much Skullduggery is afoot 😔
And more to come as they try to placate the Public. This is So Wrong. And We have No Leadership… clearly
How can people misappropriate trust money and face no charges?
After 50 years of being licensed and paying fees to RECO and the Boards, I am disgusted at the unprofessional and unethical conduct of ALL those involved in the coverup of the IPRO Realty fiasco involving about $10 million theft from people’s Real Estate Trust Account in Ontario. This includes all the people who knew the situation since May, 2025 at RECO, the Board of Directors, Real Estate Boards, OREA and CREA. To make the situation even worse, RECO approved a new corporation, ICLOUD Realty (sounds the same as IPRO ?), owned by a non-realtor with apparent relationship to the owner of IPRO. Even a worse decision by RECO to approve a former manager of IPRO to be the Broker of Record of ICLOUD Realty Ltd ! Realtors and the public should have been informed of the situation when the situation was discovered in May 2025. The public should also be made aware that TRREB made special arrangements to forego the $100 per transfer of agents transferring from IPRO to ICLOUD….who made this decision???
Reco is a toothless joke. Always has been. Always will be. They are set up to take yearly money from members and that’s pretty much it. If you have a case against a brokerage or. Gent they advise you to sort it out. Same with sign violations. Box’s card violations. And on and on. The onus is on you the agent to hold toes to the fire. Just exactly how does that work!
Shawn, I 100% agree with your comment. Navigating this industry has become a landmine for me as I come across so many shady corrupt realtors. I am not sure if RECO will ever do anything about it. That is why I am thinking of my exist. I pride myself on my honesty and working in the best interest of my clients, but unfortunately there are a lot of agents that only care about themselves. I am tired of putting in offers only to find out the agent wants to double-end and never even presents the offer. Not to mention the amount of bullying that goes on. 🙁
15 yrs experience……Stealing 8M & not losing their license permanently & paying 16M in fines is just a waste of everyones time
If Tim Hudak or any other industry insider takes his place, this indsustry will continue its current ways.
100,000 registrants have the ability to force change rather than just talk about it. Nothing changes without action,
Email your MPP, start two petitions, one that says the registrants are not in agreement with RECO, its board and how it was handled and a second for the consumer to voice their objection and opinions.
This publication has far more readers than the comments suggest, speak up publicly as loudly as you do in private groups.
Just do it!
Next scandal will be OREA and its mandatory insurance for members…
I’m not sure I agree. I was always lead to believe that the one at the “top” is the one ultimately responsible for everything and everyone below is delegated responsibilites by that person. Well that person at the top is not the Registrar, it is CEO Brenda Buchanan. Why hasn’t she been let go by the Provincial Government, who by the way, is her boss!
Her boss is the RECO board. They have all known since May.
Where is trreb and orea? They should be calling for the reco board and ceo to resign!!
As a Realtor for over 40 years, I have continually strived to the best of my ability, to be honest and professional in everything I do. I am ashamed to belong to this organization whose top brass did not have the same ideals as myself. RECO has for a long long time stopped doing the activities needed to maintain the integrity of our profession by passing off to the members to fight and squabble amongst themselves for non compliance advertising and signage which is a mess nobody wants to deal with. This is no way to operate an organization whose only purpose is to regulate in favour of consumers so they can trust the process in a Real Estate transaction.
A sweetheart deal was arranged during what appears to be months of planning and cooperation between RECO (Mr. Richer) and the two former owners of ipro, one of whom (Alves) is a long serving member of organized real estate including as a former director of RECO. Very chummy indeed.
The question is can the sweetheart deal be undone by RECO, or is it already signed sealed and therefore legally binding?
This is a massive black eye for the industry, made far worse by Richer’s conduct and the total lack of transparency from RECO over an obvious back room deal.
One of iCloud’s office managers is Joselle Nicole Ayana Alves. Is she any relation to the owner of IPro ? How exactly was Richer connected and why was he terminated? Was there a severance package? How can $8 Million be missing and no charges filed? How can this have been going on since May with no action taken until August. So many questions – so few answers. The name of our legislation is Trust in Real Estate. Please tell us how this can be true in light of recent events regarding Ipro?
Bob,
Believe it or not, she is Rui Alve’s spouse. The Broker of Record is a former iPro Broker Manager. This has all been carefully planned out including the setting up of another brokerage where agents could be transitioned.
My question is whether criminal charges will be laid in this matter to set a clear precedent and serve as a deterrent for others. Without such action, there is a risk that confidence in our regulatory framework will continue to erode.
Before moving into organized real estate, I spent over 17 years in the immigration industry. We faced a similar challenge with our Regulator at the time. Ultimately, we were able to persuade the government to replace that Regulator with one that was more powerful, transparent, and free of conflicts of interest. Importantly, the new body was granted enhanced authority to take criminal action against bad actors—ensuring accountability and restoring public trust.
I believe we are at a similar crossroads now, and decisive action is needed to protect the integrity of our profession.
From what I’m reading it appears to be a case of “Do what I say, not what I do”. They’ve promoted ethics as a significant part of our job but yet to follow same? Yes further investigation should be demanded and exposed. It parallels the federal government’s behaviour with blocked investigations and exposure to what really is going on.
From what I’m reading it appears to be a case of “Do what I say, not what I do”. They’ve promoted ethics as a significant part of our job but yet to follow same? Yes further investigation should be demanded and exposed. It parallels the federal government’s behaviour with blocked investigations and exposure to what really is going on.
There is a precedent , I think the CEO needs to go!!
I agree, accountability needs to start at the top
Just my thoughts… what do I know!
BUT….
The “role” of RECO as the REGULATOR FOR REAL ESTATE is ‘consumer protection’. Like most regulatory bodies’ mandates.
Once we start thinking hard about what their actual role is, then we can understand and accept their processes.
The IPro situation and outcome is at no fault of anyone else but the brokerage itself. Unfortunately, because brokerages are incorporated, it will take a in-depth knowledge of criminal and corporate law, by-laws and rules to make a decision. Not as easy as it sounds to make a punishable decision and set precedence for the future.
To be very honest, I am surprised we do not hear more about unscrupulous, brokerages, and members.
Decisions to take action or shut down brokerages is not an overnight act.
Investigations take time, manpower, and money.
I like all of you, as a member, I would like to see more transparency from RECO.
Probably at the AGM, Reco will need to disclose more pertaining to the IPro decision and any other investigations of the time factor to complete these investigations and the cost for these investigations.
It is very important to remember the role and mandate of our REGULATORY body before we vote in individuals to sit on all boards and committee’s, take a long and hard look at what their positions if they are truly suited for the job!
Again, just my thoughts… what do I know😉
With regard to the comment that “the decision to take action or shut down brokerages is not an overnight act, investigations take time, manpower, and money” and “it will take a in-depth knowledge of criminal and corporate law, by-laws and rules to make a decision. Not as easy as it sounds to make a punishable decision and set precedence for the future” My comment is well, they made the discovery of this massive misappropriation of funds in May and did not make any announcement until August. And, by the way, isn’t this Reco’s raison d’etre, to do exactly as you outlined above. And if they were not qualified to do so then they should have followed the advice they give to all registrants and hand the questions over to a qualified entity in order to make an informed decision. But they did make a decision, didn’t they, and the decision was to negotiate terms with the Brokers of Record which gave them time to restructure under a new name, with no consequences or penalties, save giving up their licence to trade in real estate. Many questions to be answered.
These are just my thoughts too, but what do I know. The whole issue should be handed over to the authorities in a very timely manner. In fact, I think the magnitude of this occurrence should be of high interest to The Premier of Ontario.
Perhaps it is time for the overseeing of Brokerages and Realtors to be handed back to a Provincial Government entity as it was originally.
Definitely needs to be thoroughly investigated, too many people knew of this and did nothing.
This makes zero sense that owners of a brokerage can steal millions of dollars and RECO who regulates our industry says it’s okay we will not fine you. Instead look into how this went so long without being notice. Meanwhile we will fine you for all other things real estate related what a joke.
This shows the need for dire change in this industry. Public trust is sacrosanct and this needs much investigation and restitution along with punitive meadures
RECO has decided not to lay charges?
Seriously, you can steal $10,000,000 and walk away.
Sad day for anyone who thought they belong to an industry with standards.
Maybe the investigation should start with the cover up at RECO.
RECO is the biggest embarrassment to our industry.
You can steal $10,000,000 and get away with it?
Seriously?
Time start a criminal investigation to overturn the decision to let IPro walk.
My question is: What in all this mess involved Joseph Richter? Was he in some way the beneficiary of this fraudulent activity? Was there information that Richter knew and he did not take appropriate action in a timely manner? There needs to be a better explanation provided around Richter’s dismissal.
And what is the relationship between the owners and managers of iPro Realty Corp and iCloud Realty Corp (if there is one)?
The industry needs a full and transparent accounting of this situation. It does certainly seem as though the RECO Board bears some responsibility and scrutiny from the Ontario government.
Buchanan needs to resign, along with any RECO board members who are implicated.
This is a disgrace, this is criminal, follow the money….where is it?!?!
As a Realtor working in Ontario, I can no longer stay silent about what’s happening at RECO. The Real Estate Council of Ontario is supposed to protect consumers and uphold the integrity of our industry — but right now, it feels like the fox is guarding the henhouse. Three sitting directors are not independent regulators at all, but active brokers: Katie Steinfeld, Broker of Record and owner of On The Block Realty Inc.; Owen Crampsie, a long-time broker with Royal LePage; and Sylvia Kirkwood, a broker with Coldwell Banker. These aren’t neutral watchdogs. They are our competitors, with vested interests in the very system they are supposed to oversee.
The recent collapse of iPro Realty proves just how dangerous this structure is. Over $8 million ( or 10 Million – both numbers are sickening) in consumer trust funds disappeared. Buyers and sellers were left stranded. Thousands of agents were blindsided. And what was RECO’s response? Shut the doors, bar the co-founders, and quietly move on — with no charges laid under its own statute. As professionals in this business, we are told RECO is there to protect the public and ensure confidence in real estate. Instead, the message to every consumer is clear: when insiders fail, RECO closes ranks.
This is not just a consumer issue — it’s an industry issue. Realtors like me are out there every day, building trust with clients, working hard to uphold the reputation of our profession. But every time RECO looks the other way, it undermines the work we all do. We need a regulator that is truly independent, transparent, and willing to hold its own accountable. Until that happens, trust in our industry will remain broken — and Realtors like me will keep paying the price.
Corruption everywhere. Politics, construction, unions, RECO. It’s the new norm.
This is a disgrace, this is criminal, follow the money…….where is it ?!?! There need to be charges brought!!
There is a word that isn’t in the name but always belongs in front of the words “Real Estate Brokers Trust Account”, and that word is “sacred”.
I don’t know the full story here, but as a Broker of Record, I do know what it means to be responsible for a Trust Account. The word “Trust” is not something to be taken lightly.
I also know the impact a story like this has on all of us who remain committed to the principles that Trust demands.
Even if I take this at face value and the amount missing was reduced to $8 million… to me, $8,000 is enough. If funds are willingly taken from the Trust, the damage is already done. Our actions as Brokers of Record with respect to Trust matter to the entire industry, and sadly, the misactions of one reflect upon us all.
I predict…
As a result of this debacle you can say goodbye to RECO and hello to the provincial government taking full control.
The provincial government will become the regulator and the bureaucracy will bloat.
The adminstrative penalties and fines will be massive in comparison to what the Ontario Industry has experienced.
I don’t understand how Reco kept a $10million+ shortfall confidential for 3 months, allowing IPro Realty to continue taking in deposits, allowing their agents to sell properties (knowing that the commissions will be held until final accounting). That is Full Disclosure? That is protecting the public? I would think that there was more than just one person within Reco who knew about this? The OPP should be investigating both RECO and the two IPRO founders along with anyone else who knew about the stolen Trust money. They claim to have sold the IPro assets, where did that money go? All of these funds can be traced. Then Reco gives them special and preferential treatment to transfer IPro agents to ICloud! as for the CEO of Reco undertaking a review of this matter! Seriously? What does that even mean? What are you “reviewing”? How to hide Reco’s participation with this coverup (from May to August) and minimize Reco’s liability? This type of behaviour less than 2 years after creating the Trust in Real Esate Services Act! Fellow realtors, this is only the beginning, let’s see what happens to the ownership of PropTx!
RECO’s lack of transparency is unforgivable! Undermining public trust. Failure in providing clear, timely explanations further erodes any remaining confidence in oversight process. Long tar & feathers!
August 14, 2025 RECO announces the closure of iPro Realty
RECO August 25, 2025. ”RECO’s board of directors takes its responsibility to protect consumers and registrants seriously. We have directed the CEO to take clear and concrete action to protect homebuyers and sellers and real estate agents[NB*] and to strengthen our ability to deliver on RECO’s mandate,” said Katie Steinfeld, Chair. “
*Why is that even in there? It is not RECO’s mandate to “protect real estate agents.”
It took 11 days to take such action that should have been immediate back in May when they first found it, especially since it has now been admitted by RECO that Colucci and Alves admitted back then to the shortfall. But they didn’t and the why they didn’t can reasonably be speculated to be that it has been the uproar from the public and within the industry that caused them to finally do the following per their news of today:
• The immediate freeze of iPro’s accounts, to safeguard funds and secure business operations,
• A comprehensive and independent audit into the handling of the iPro matter,
• A full review of ongoing compliance files currently at RECO, and
• A thorough organizational review to ensure that RECO is equipped to meet its consumer protection mandate, to assess and improve the regulatory function, and to strengthen oversight and accountability within the organization.
Many are asking where are the OREA and the TRREB on this. It may be a good question if they are generally publicly vocal about improprieties within the industry, however, given the call by many for the firing of the entire board which includes the OREA/TRREB connections below, their silence may be to not discredit any of their own past directors as per their by-laws and codes of ethics.
Katie Steinfeld, Chairperson. married to Daniel Steinfeld, director and incoming president for the Toronto Regional Real Estate Board
Committee Tania Artenosi past president of the OREA and Barrie District Real Estate Board (amalgamated with the TRREB)
Sandra O’Donohue past director at the OREA
Lori Roberts TRREB Director and member of its arbitrations committee panel.
Despite the switch in 2024 to its board of director composition from being 9 industry members or three-quarters, to one-third and now 3 of 9. The look isn’t good as a self-regulating industry where the Minister in charge allows RECO’s board to appoint the registrar and CEO under not-for-profit legislation and possibly determine his performative duties. More stringent change has to be put in place, so hiring a law firm to review the Richer/iPro as well as an accounting firm to review the registrar’s processes is ffantastic but, in accordance with the Administrative Agreement:
~~“The Minister may conduct performance, governance, accountability or financial reviews of the Administrative Authority after giving reasonable notice if feasible and may recommend changes as a result.”
And that is the number 1 failure! The Minister should have called for that a week later. But no, he left it to the CEO to assess all current compliance files, audit, investigation, and enforcement procedures, and the appropriate authority and responsibilities of the Registrar role while he spares the board and the board selected CEO any scrutiny.
I expect, as a means to absolve themselves and despite the fact the CEO/board is responsible for the effectiveness of the registrar, both they and the Minister to eventually proclaim that under the province’s mandate, neither of them could interfere with the registrar’s “independent exercise of the statutory functions.”
Was Richer in the wrong? Yes. Was he a scapegoat? Absolutely!
It is time for s13(1) of the agreement, terminating the CEO/Board, to be invoked Alberta style —-“the Lieutenant Governor in Council considers it advisable in the public interest to revoke the Administrative Authority’s designation.”
If the registrar colluded with the principles of iPro, which seems to be the case given the timeline of the original discovery of the shortfall and the sweetheart deal made, then any deal made with them to avoid charges should be null and void, and they should all face criminal charges.
Thank God in 42 years in business and Broker of Record since 1987, I have never had a deal with the amateurs at the defunct company.
But if I did I would be very upset.
Say it ain’t so Joe, but you should have closed down the firm months ago. Sorry Joe, but you failed and you were fired with cause.
Who gives permission to allow the name of a company with misrepresentations. Confusion to say the least. Am I making a deal
with Apple? I wish. Amateur hour again.
I would say let’s get the Provincial politicians involved. Maybe? But the MPPs gave a 95 year lease to some off shore spa at Ontario Place. Who can we trust? Who can we call? The Ghost Busters!
Fellow realtors, stay positive.
Nobody Snows The Snowman
I JUST HAVE A LOT OF QUESTIONS:
1. What is/was the personal relationship between Richer and Alves/Collucci?
2. How did Alves & Collucci raid the Trust Account without any bells going off? Apparently iPro was scheduled to have an audit by RECO in May, and they called Richer and asked for it to be delayed so they could clear up some issues. Richer appears to have agreed to that request. Did I read that right?
3. When did Richer find out that the ‘issues’ with the Trust Account were that large sums of money being held as security deposits and commissions had gone missing.
4. When did RECO find out these monies had been ‘used to pay operating expenses and Shareholders’ Dividedends’? Those costs come out of the Brokerage’s Operating Accounts, not EVER out of the Trust Account. Richer knows that, and so do Alves and Collucci.
4. Why didn’t Richer/RECO take immediate action? Why was iPro allowed to operate as usual completing huge sums in additional sales before anything was done?
5. Was there ever any previous concerns on the part of RECO as to how iPro operated their business?
Based on my understanding of RECO’s mandate to enforce Provincial Legislation to protect consumers and registrants, I would think that RECO should have informed the Insurance Company (and their own insurer) of the upcoming losses they would be expected cover, b) the Brokers of Record should have been locked out, had their licences suspended, and a court order procured to freeze their personal assets pending an investigation, c) a forensic accounting firm should have been brought in to oversee the day-to-day operation of the business until it could have been wound down, and d) the OPP should have been informed immediately.
Correct me if I’m wrong, but it seems that none of these actions were taken, and if they were, it wasn’t until months later.
6. I’m curious how $2.5 MILLION of the original >$10 MILLION got back into the Trust Account? Where did it come from? Who put the money back in? Can any more money be recovered?
7. Who else besides Richer knew about iPro, and when?
In my opinion, the Province should step in; this situation just leaves so many questions.
While they’re at it, the Province should look into the MANDATORY OREA HEALTH INSURANCE that was foisted onto Members by surruptitious by-law changes, in order to replace and augment OREA’s multi-million dollar payroll, after the Province removed their monopoly on providing MANDATORY education for real estate practitioners.