An Ontario court judge froze shuttered brokerage firm iPro Realty’s assets on Monday.

Judge Peter Black granted the Real Estate Council of Ontario’s request to do so after the brokerage was closed in August after admitting that it mishandled $10.5 million worth of client and realtor funds. The company has paid back $3 million.

RECO shut down iPro while deciding not to file charges against the company. The firm’s two co-founders also signed undertakings to never apply again to certify the brokerage or serve as brokers.

Citing court filings, The Globe and Mail reported that iPro’s $27-million debt far exceeds the value of the defunct business. Court heard Tuesday that there are two iPro-branded companies with multiple bank accounts; however, only one of the firms, iPro Realty Ltd., was registered with RECO, The Toronto Star reported.

A lawyer for iPro argued that an asset freeze would breach the agreement not to penalize the company further. However, judge Black still granted the freeze while providing iPro 24 hours to provide a figure illustrating how much money the co-founders would need for living expenses.

RECO shut down iPro while deciding not to file charges or fine the company. The firm’s two co-founders also signed undertakings to never apply again to certify the brokerage or serve as brokers.

RECO also ousted longtime registrar Joseph Richer after he decided that the group would not charge iPro and its two founders.

The misplaced money includes consumer funds and broker commissions. ClaimsPro will assist both consumers and brokers with their recovery attempts.

The Ontario Provincial Police is investigating iPro and its activities.

Pictured: Former iPro Realty listing.

Photo: Realtor.ca