Ontario's Largest Real Estate Brokerage Collapses: $30 Million in Debts and Missing Trust Funds

The sudden collapse of iPro Realty, one of Ontario's largest real estate brokerages, has left behind a trail of debts and missing trust funds. According to documents filed by the Real Estate Council of Ontario, iPro's debts totalled more than $27 million, with $7 million still missing from its trust funds. The brokerage's assets were sold to iCloud Realty for a mere $3 million, a stark contrast to its towering debts.

Key Takeaways:

• iPro Realty's debts totalled more than $27 million, with $7 million still missing from its trust funds.
• The brokerage's assets were sold to iCloud Realty for $3 million, which was transferred directly to iPro's trust account.
• Forensic audit expert Alessandra Leggio Di Matteo found that between January 1 and August 22, iPro moved more than $17 million out of its trust accounts, co-mingling the funds with general brokerage funds.
• The debts are outlined in 44 loan agreements totalling roughly $7 million and 131 investor agreements with a company called Hippo Holdings that owned iPro's brokerage business until 2024.
• More than $1.8 million in trust money was used to pay iPro's lenders and investors in the same period.
• 28 transactions adding up to $281,009 appear to be payments to iPro's owners, Fedele Colucci and Rui Alves.
• 16 cheques worth $56,000 were made out to "Cash," including eight cheques between March 24 and 27 that added up to $40,000.
• Cheques to construction contractors and a banquet hall were also found, adding up to $177,180.
• Funds worth $846,850 appear to come from trust accounts, relating to operating costs, including branch offices and over 2,400 realtors and brokers.

Statistics:

• $27 million: iPro Realty's total debts
• $7 million: still missing from iPro's trust funds
• $3 million: purchase price of iPro's assets by iCloud Realty
• $17 million: amount moved out of iPro's trust accounts between January 1 and August 22
• $7 million: total of loan agreements
• $1.8 million: trust money used to pay iPro's lenders and investors
• $281,009: payments to iPro's owners, Fedele Colucci and Rui Alves
• $56,000: cheques made out to "Cash"
• $177,180: cheques to construction contractors and a banquet hall
• $846,850: funds from trust accounts, relating to operating costs
• 44: number of loan agreements
• 131: number of investor agreements with Hippo Holdings
• 2,400: number of realtors and brokers working for iPro Realty

Sources:

• "Defunct brokerage, once one of Ontario’s largest, sold its assets to iCloud Realty for $3-million" by Globe and Mail
• "Real Estate Council of Ontario files affidavits alleging massive misspending by iPro Realty" by Globe and Mail
• Alessandra Leggio Di Matteo affidavit filed by the Real Estate Council of Ontario
• Ontario's Superior Court of Justice documents