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- Another Trust Account Scandal Hits Ontario
Another Trust Account Scandal Hits Ontario
$2.7M taken from trust accounts, power-of-sale listings rise, Toronto condos called Ponzi finance, private funds want your money
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Today, we’re covering
🚨 RECO freezes 4 More Brokerages
🏚️ Power-of-Sale Listings are Rising across Ontario
🤔 Toronto Condos Need Flips to Survive
🤑 Private Markets Wants Your Money
🏛️ Federal Workers Ordered Back to Office
😲 WTF of The Week
Read Time: 5 minutes
🚨 RECO freezes 4 More Brokerages
Source: RECO
The 411: Ontario’s real estate regulator has taken action against four more brokerages after finding millions of dollars were improperly taken from trust accounts, deepening concerns about oversight failures across the industry.
RECO found that $2.7M was unlawfully withdrawn from trust accounts at four Save Max brokerages and later replaced before month-end reconciliations.
RECO issued notices of proposal to revoke registration, along with immediate suspension and freeze orders against:
Save Max Real Estate Inc., Save Max First Choice Real Estate Inc, Save Max Supreme Real Estate Inc, Save Max Ace Real Estate
Brokers Raman and Nidhi Dua
According to RECO, funds were used for non-permitted purposes, including:
Loan payments, Property management fees, Taxes, Credit card balances and Vendor services.
On February 3, RECO froze the brokerages’ bank accounts, calling it the “strongest safeguard available” to prevent further misuse of consumer funds.
Why This Matters: Trust accounts are supposed to be safe. If brokerages can quietly “borrow” millions, put it back before month-end, and keep operating until someone complains, that’s not a system working; that’s a system hoping no one looks too closely.
