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A husband and wife who claim they were scammed by former Calgary Realtor Eric Drinkwater say roadblocks with the Real Estate Council of Alberta are adding to their strife as they seek justice.
The couple, who asked to remain anonymous to protect their reputations in the oil and medical fields, says they lost $87,000 after agreeing to invest with Drinkwater in 2022.
Calgary police charged Drinkwater on May 8 with one count of fraud over $5,000. Investigators say Drinkwater solicited loans disguised as real estate investment opportunities, resulting in at least 16 victims and a combined loss of more than $1.9-million.
A professional history with Drinkwater
According to the pair, they met Drinkwater in 2019 after hiring him as their Realtor to buy their house. They hired him again when they sold that home in January 2022.
They allege Drinkwater approached them in May 2022 with an offer to invest in bridge loans for his real estate clients, saying they trusted Drinkwater because of his credentials as a Realtor with Re/Max Central.
“We know the secondary market exists, so it was not something that seemed so alien because it was coming from a Realtor,” they told Real Estate Magazine.
Drinkwater held up his end of the bargain for the first number of deals, and in total, they say they invested $236,000.
Things went “sideways” when the deals started getting bigger. They say Drinkwater began having excuses and not keeping his word.
“He must have had five or six uncles die within a six-month period,” they said.
In early 2023, the couple says they learned of another person who had a judgment against him. By October 2023, they had a consent judgment against Drinkwater, obtained by their personal lawyer, according to the pair who says they’ve spent $10,000 on legal fees.
The couple says they were prepared to cut their losses and move on until more victims began to surface in 2024.
Frustration with RECA
Despite criminal charges against Drinkwater and RECA’s own in-depth investigation, they say they are still having to fight tooth and nail for justice.
They say they met with two representatives from RECA in late 2024 and sent over all the documentation that was requested.
They say they’ve heard little back from RECA, and they’ve been told their consent judgment is not enough evidence to build a case for retribution.
“There’s no process working with RECA. They control everything.”
Waiting for justice
The couple is part of a group of about seven victims who are hoping to be eligible to apply to the Real Estate Assurance Fund for restitution.
Victims have been told that the prerequisite for applying is a judgment of fraud in civil or criminal court. Drinkwater is scheduled to appear in court in June to have his criminal case heard.
RECA spokesperson Shawn Howard said the association empathizes with those who bring claims forward, but there are rules it must follow.
“No one wants to be in a situation where they need to turn to the Assurance Fund, and when people do, we understand how serious it is for them,” he said.
Howard said RECA’s lawyer who administers the fund has been in contact with a number of people (or their counsel) to help them understand the application process and protect their rights.
“There are rules and procedures we must follow to assess all claims – this is set out in the legislation the fund is established under and governed by – and if there are outstanding questions, we are happy to address those with people.”
The fund is collected and issued by RECA, and protects consumers from unethical behaviour by real estate professionals. It was set up to compensate consumers who suffer a financial loss, and it covers fraud under real estate and mortgage practices.
Compensation paid from the fund since its 1985 inception totals $3.6-million, according to RECA’s most recent annual report. Over the last 10 years, the average amount paid out per year has totalled $165,000. RECA paid $54,301 in compensation from the fund in 2023-2024.
The vast majority of Drinkwater’s alleged victims do not have enough evidence and documentation to get a conviction, or they’ve chosen not to pursue justice, according to a source with direct knowledge of the situation.
Plaintiffs in the civil case submitted evidence that included an acknowledgement by Drinkwater to RECA that victims numbered at least 71, and may have exceeded 100, according to a press release from the victim’s counsel, Loberg Ector LLP.
On Mar. 3, Loberg Ector LLP announced it had secured a judgment against Drinkwater in a civil lawsuit filed by four plaintiffs. The court awarded $2.28-million in losses, $185,000 in interest, and $1-million in punitive damages.
Regulator hearing upcoming
A virtual hearing is slated for Thursday for a panel to review allegations of Drinkwater’s conduct.
The council suspended Drinkwater’s licence in June 2024, and the hearing will determine any further sanctions from the industry watchdog, including the possible cancellation of his real estate license.
Drinkwater did not return a request for comment.
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.
Drinkwater’s real estate license needs to be cancelled for good. He needs to be jailed. If he is working with other fraudsters, they need to be identified and be brought to justice. I feel sorry for all those victims who worked hard for their monies to be scammed by a real estate “professional”.
How much of a stink from a body do you need to prove a murder????This “Realtor” needs to never do business under this disguise ever again. Always remember that stinks last forever, and consumers have VERY long memories. Wrap this thing up and give the victims their well deserved justice and compensated damages back. Delayed, murky justice is no justice at all
Neither Drinkwater nor Hare will do business again. Both will go to prison.
Another sad case. We need more information and explanation. A number of complex questions and issues arise and may actually extend beyond the purview of the real estate regulatory body and assurance fund.
Where are the funds now? And what are applicable agencies doing?
What regulations exist governing people acting as private lender acquiring funds as an investment opportunity made from interest on bridge loans ?
How does the regulatory body see being a realtor in this, knowledge, expertise etc.
Contract Law – how were these loans / investments set up with client loaner/investors?
Would Canadian/Albertan regulations require corporate status for such an operation?As a supposed investment scheme would this fall under the Securities Commission?
So at least 16 victims suffer a combined loss of more than $1.9-million. How many of them consulted a lawyer to paper the transactions? My guess is none. Sometimes greed overrides common sense. Who hands over this kind of money without evidence of where and how it is being invested and without documentation proving the loan? Hard to protect people against their own carelessness. This could have been avoided if the lenders had obtained independent legal advice.
Great points Bob!
If this was done through Remax Central why isn’t Remax being investigated? Did the money end up with his uncle Pat Hare. Court docket 2401 09551 is very informative. Certainly tarnishes the profession.
Hi John – is the docked on internet/Googling?
search court of King’s Bench or Drinkwater. Unfortunately can’t post a link here but if you go to canlii.org & search you will find it. Interesting – sounds like uncle Hare was the mastermind.
Real Esate Agents and Mortgage Brokers are uneducated period.
I work in the legal industry .
I have alot of private Mortgage lenders come to me all the time to use my services as a trained and insured real esate conveyancer specialist.
I reported Eric’s dishonest dealings to the Real Estate Board personally and was told he wasn’t doing anything wrong! — CLEARLY both Eric & Pat had someone on the inside blocking complaints.