When it comes to the iPro affair, everyone points their fingers at Joe. But, was he the only one at RECO who knew what was going on?
Let’s have a look at the Dentons’ timeline:
RECO Timeline iPro
“May 19, 2025 RECO receives two letters from Mr. Colucci’s lawyer. The first letter, addressed to the Registrar and a member of RECO’s inspections team, requests postponement of the audit scheduled for May 20, 2025 “pending urgent negotiations of a legal issue with RECO.”
The second letter, addressed to a lawyer in RECO’s legal team, discloses a shortfall of $6.5 million in iPro’s trust account, and a further shortfall of $3.5 million in iPro’s commission funds.
The letter further discloses that iPro has received a purchase offer from Ms. Terry who has offered to purchase iPro’s assets for $10.5 million.
The letter was subsequently forwarded by a member of RECO’s legal team to a member of RECO’s inspections team, who then further forwarded the letter to the Registrar.
Upon reviewing the letter from Mr. Colucci’s lawyer, the Registrar indicates that this situation would be a good one for an undertaking agreement. Specifically, the letter from Mr. Colucci’s lawyer was emailed to the Registrar at 7:08 p.m., and the Registrar responded at 7:29 p.m. stating “This would be a good one to get an undertaking to resign and never reapply.” On the same day, the Registrar advises the CEO that he is dealing with a matter concerning a former RECO board member named “Rui.”
May 21, 2025 RECO conducts inspection on-site at iPro. RECO requests documents from iPro in connection with the inspection.
May 22, 2025 RECO continues and concludes its on-site inspection at iPro.
May 23, 2025 RECO receives the following anonymous complaint: “I want to highlight an important incident regarding Rui and Fidelle. We are fully aware that they have breached the trust fund at Ipro Realty, and it’s crucial that this matter is addressed” (the “Anonymous Complaint”).
May 27, 2025 The Anonymous Complaint is processed by RECO’s complaints team and forwarded to RECO’s inspections team. The Anonymous Complaint is subsequently referred by the inspections team to the Registrar and various members of the Registrar’s team and RECO’s legal team.
June 5, 2025 An in-person meeting is held at RECO’s offices between the Registrar, various members of the Registrar’s team, RECO’s legal team, Mr. Colucci and his lawyer, and Mr. Alves.
June 9, 2025 RECO’s inspections team prepares a memorandum summarizing its findings from the on-site visits and subsequent documentary disclosure from iPro. The inspection process concludes (as noted above, the in-person inspection concluded on May 22, 2025)
June 11, 2025 RECO’s inspections team presents the results of its inspection at iPro to members of the Regulatory Division and RECO’s litigation team.
June 12, 2025 RECO receives a letter from Ms. Terry, in which Ms. Terry explains that she is aware of the trust account issues at iPro, provides a description of the structure of the proposed transaction, and explains that Ms. Terry is investing in the “goodwill of the company.”
July 2, 2025 iPro advises RECO of a potential deal with another brokerage to acquire iPro
July 9, 2025 iPro advises RECO that the other brokerage is no longer proceeding with an acquisition of iPro’s assets, and that Ms. Terry is now willing to pay only $3 million to acquire iPro’s assets.
July 21, 2025 RECO’s Deputy of Compliance (the “Deputy Registrar”) sends an email to members of RECO’s inspections, investigations, registrations, client service, insurance, legal and stakeholder relations teams inviting them to a kick-off meeting to discuss activities and readiness for the wind-up of iPro’s operations
July 22, 2025 The Deputy Registrar holds kick-off meeting to discuss impending wind-up of iPro operations.
July 23, 2025 RECO reviews iCloud’s application and requests additional outstanding documents.
July 29, 2025 RECO’s senior management team requests that the employee handling the iCloud registration application expedite the iCloud application review. RECO receives a letter from their insurer that it cannot commit to a course of action without further information, but identifying that from a common sense perspective it made sense that the sale of iPro’s assets conclude and the $3 million be deposited into the trust account. Meeting of the RECO Board’s Audit, Risk & Insurance Committee. There is no mention of the iPro Matter during the meeting.
August 8, 2025 The Undertaking Agreement is executed between RECO and iPro. iCloud is registered as a brokerage with RECO.
August 10, 2025 The Registrar has a call with the Board Chair and the CEO to advise that an Undertaking Agreement has been reached. The Registrar provides a high-level summary of the iPro situation. This is the first time the Board Chair learns of the situation with iPro. The Board Chair understands from the Registrar that he wishes to notify the RECO Board at the same time as the public is notified, which the Board Chair understands at the time to be within the Registrar’s purview.
August 13, 2025 The CEO sends an email to the RECO Board notifying it of the Undertaking Agreement, the circumstances that gave rise to its execution, and the transaction between iPro and iCloud. This was the first time that the RECO Board members, other than the Board Chair, learned of the iPro Matter. The email does not provide details of the terms of the Undertaking Agreement. RECO briefs Ministry staff on the Undertaking Agreement, the circumstances that gave rise to its execution, and the transaction between iPro and iCloud.
August 14, 2025 RECO publishes a news release on its website advising of its agreement with iPro to shut down its brokerage after a “significant shortfall” was identified in iPro’s accounts following a scheduled inspection. iPro publishes its announcement regarding its closure and transfer of operations to iCloud. iPro also sends an invitation to its brokers for a special meeting; the invitation advises that “after nearly 45 incredible years, Fedele & Rui are (semi) Retiring.” The meeting, held the same day, advises participants that iPro has been sold to a wealthy private financier and will be rebranded as iCloud. RECO notifies the Peel Regional Police’s fraud unit that it wishes to report serious fraud allegations related to iPro.
August 18, 2025 RECO provides the Peel Regional Police with a memorandum outlining the information requested by the Peel Regional Police.
August 19, 2025 iPro’s registration with RECO is terminated, along with the registration of Mr. Alves and Mr. Colucci.
August 20, 2025 RECO resumes its attendance at iPro’s site to inspect and collect documents
August 22, 2025 Mr. Richer, the Registrar departs from RECO.
August 24, 2025 Freeze order request to freeze iPro’s accounts is delivered to iPro’s bank by RECO.
August 25, 2025 RECO places a freeze order on iPro’s accounts.”
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The Undertaking Agreement was executed on 8 August 2025. Who at RECO knew about this iPro matter before that:
- RECO (as an entity),
- Registrar,
- Member of RECO’s inspection team,
- Lawyer at RECO’s legal team,
- Member of RECO’s inspection team,
- CEO,
- RECO’s complaints team,
- RECO’s inspection team,
- Various members of the Registrar’s team,
- RECO’s legal team,
- members of the RECO’s Regulatory Division,
- RECO’s litigation team,
- RECO’s Deputy of Compliance (the “Deputy Registrar”),
- Members of RECO’s investigations,
- Members of RECO’s registrations,
- Members of RECO’s client service,
- Members of RECO’s insurance,
- Members of RECO’s legal teams,
- Members of RECO’s stakeholder relations teams,
- RECO’s senior management team, and
- RECO’s insurer.
I don’t know how many people that would be, but it certainly doesn’t sound like the Registrar is acting alone.
If it was up to me, I don’t think that I would be pointing my finger at just one person!
Brian Madigan LL.B., Brokerwww.OntarioRealEstateSource.com
Comments 4
shame of canada
It seems that the insurer simply wanted to recoup funds and was made the lead decision maker rather than a Regulator who should have shut the door on day one.
Such a storey of administrative ineptness.
The agent “asset” should never have been sold to a non-arms length buyer. It should have been collapsed. What a message to our industry.
Dear Brian, thank you for sharing your view of this devastating matter.
We former ipro, the deeply affected agents need HELP.
RECO is very vague on dealing with us. Insurance is a mess. Our lives are not the same.
Please contact us. If you’re available we can do a video call to discuss our options as a group.
Thank you, kindly.
Nicely organized