The registrar for Ontario’s real estate professional regulator is leaving after more than a decade on the job in the wake of the collapse of iPro Realty Ltd.
Brenda Buchanan, the CEO of the Real Estate Council of Ontario, said in a statement on Friday about the departure of Joseph Richer that she acted with the support of the board of directors and that his exit is effective immediately.
As registrar, Mr. Richer was charged with enforcing Ontario’s laws governing the conduct of 110,000 licensed realtors and brokers, including financial audits, disciplinary investigations and hearings for the multibillion-dollar industry.
The move follows Mr. Richer and RECO’s confirmation the regulator had known for months key details about millions of missing dollars removed from the legally protected trust accounts of iPro, a brokerage that at the time was one of Ontario’s largest, with more than 2,400 agents.
According to e-mailed statements from RECO attributed to Mr. Richer, one day before a financial inspection scheduled for May 20, the owners of iPro – Rui Alves and Fedele Colucci – told the regulator that there was a shortfall in its trust account. That information was not disclosed to the public until Aug. 14.
Ontario regulator shuts down iPro Realty after finding $10-million shortfall in trust accounts
Initially, more than $10-million was missing from accounts that are supposed to hold realtor commissions and homebuyer down payments, and according to RECO, the money was removed by Mr. Colucci to be used to repay investors of the brokerage’s holding company and for general operations.
RECO announced on Aug. 14 that it had entered into an undertaking with Mr. Alves and Mr. Colucci to wind up iPro, but in recent days Mr. Richer has confirmed to the Toronto Star part of that deal included his willingness not to lay provincial offences charges against either of the iPro founders – though they would lose their licences to trade in real estate.
Ms. Buchanan announced Mr. Richer’s departure one day later.
“I have undertaken to review this matter and I am committed to working closely with RECO’s board to provide transparency, oversight and accountability on this matter,” Ms. Buchanan said in a statement provided by RECO. “This is my top priority.”
RECO did not respond immediately to requests for more information.