David Allen, owner and broker of record of Toronto-based Graydon Hill Realty, has been fined $20,000 and ordered to pay $100,000 in restitution after pleading guilty to charges brought by the Real Estate Council of Ontario (RECO) relating to the improper disbursements of funds from the brokerage’s real estate trust account.

The court also ordered Graydon Hill Realty to pay $250,000, the largest fine permitted under the law that governs real estate brokerages, brokers and sales reps in the province.

“The vast majority of brokers and salespersons do a good job, but those who break the rules will face serious consequences,” says Joseph Richer, RECO’s registrar, in a news release. “These are significant fines, which speak to the serious threat breaches of trust have on consumers and in turn their confidence in the profession.”

The charges against Allen and the brokerage stem from a January 2013 inspection that identified irregularities in the brokerage’s trust account, RECO says. The regulator froze the brokerage’s bank accounts and suspended and issued proposals to revoke the registrations of both the brokerage and Allen. No appeal was filed and RECO revoked both registrations on Feb.11.

During the proceedings, the Ontario Court of Justice heard that Allen moved approximately $200,000 from the brokerage’s trust account between March 2012 and January 2013 through a series of unauthorized transfers.

RECO has a consumer deposit insurance program that provides coverage of up to $100,000 per claim in the event of fraud, insolvency or misappropriation of funds by a registrant. No consumers are out of pocket as a result of the misconduct, says RECO.