Save Max is fighting the Real Estate Council of Ontario’s disciplinary action against it, calling the regulator’s measures “unwarranted” and denying that any trust funds were misappropriated.

In a statement issued by law firm Henein Hutchison Robitaille, the Save Max said Real Estate Council of Ontario (RECO) had taken regulatory action that created “the impression that $2.7 million was misappropriated from the brokerage trust accounts. This is not accurate. This did not occur.” The Globe and Mail reported that the law firm recently filed a notice of appeal at the Licence Appeal Tribunal to block RECO from suspending Save Max personnel and outlets.

RECO announced in early February that it had immediately suspended two Save Max brokers of record and four leaders, while also freezing trust accounts at the Mississauga, Ont.-headquartered company’s brokerages. The regulator also aims to suspend four Save Max brokerages.

The regulator is seeking to revoke the registrations of brokers of record Raman Duha and Nidhi Duha and has proposed revoking their registrations, along with those of four Save Max locations in Mississauga. RECO alleges that $2.7 million was unlawfully disbursed from the company’s trust accounts, demonstrating “clear and repeated breaches of the Real Estate and Brokers Act.”

RECO said the actions followed an investigation that it launched into Save Max in December 2024.

Save Max says it has more than 1,100 real estate agents and 50 brokerages across Canada. But Henein Hutchison Robitaille stated that “no funds are missing” and rejected what it described as rumours about the firm’s trust accounts.

Henein Hutchison Robitaille contended that RECO is trying to save face after it was harshly criticized for its slow shutdown of iPro Realty amid allegations that the company misappropriated $10.5 million in broker and client trust funds.

“It is well known that RECO failed in its regulatory obligations in handling the iPro Realty trust fund misappropriation scandal. Save Max is not iPro. Nor is this an opportunity for RECO to rehabilitate its reputation as a competent regulator. Jobs and people’s homes hang in the balance,” the statement said.

The company added that the allegations and what it called RECO’s “disproportionate action” have caused “serious harm to Save Max’s business, agents, brokers, and clients.”

RECO shut down iPro in 2025 after the $10.5 million was allegedly misappropriated. The company subsequently paid back $3 million and its two co-founders Rui Alves, who is a former RECO board member, and Fede Colucci agreed never to apply to certify a brokerage again or serve as brokers.

As a result, Alves and Colucci were not charged or fined, a decision that led to RECO being intensely criticized by the real estate industry and drawing the provincial government’s ire. The company is now the subject of a police investigation.

In late 2025, the province dismissed RECO’s entire board and appointed Lépine, a communications and government relations strategist. He assumed the duties of acting CEO after former CEO Brenda Buchanan resigned, effective Dec. 31.

Lépine has stated that his reform efforts could include scrapping RECO.

RECO said Wednesday that it has been pursuing “multiple recovery pathways” related to iPro, including the commission-insurance process and civil proceedings to recover trust account shortfalls that the regulator believes resulted from the misuse of funds by iPro’s principals.

“While recovery through the courts will take time, RECO has determined that registrants should not bear further financial responsibility while these efforts continue,” said the regulator. “Given the nature and scale of the iPro matter, RECO has taken steps to support the work of the insurer by enabling full payment of all eligible commission- protection claims.”

Stephen Crawford, minister of public and business services, said RECO’s move demonstrates the province commitment to protecting the people of Ontario.

“By ensuring every eligible commission protection claim is paid in full in accordance with the insurance program, we are putting registrants first, strengthening accountability, and delivering the stability people expect and deserve,” he said. “This is a key step in protecting Ontario’s real estate market and restoring confidence for families and workers across the province.”

“From day one, our government has been clear: we will always protect the people of Ontario. That’s why I directed RECO to take strong, decisive action to restore trust in the real estate services sector and to make sure hardworking registrants are not left paying the price for the actions of a few bad actors.”

Minister Crawford continued, “Today’s announcement shows that commitment in action. By ensuring every eligible commission protection claim is paid in full in accordance with the insurance program, we are putting registrants first, strengthening accountability, and delivering the stability people expect and deserve. This is a key step in protecting Ontario’s real estate market and restoring confidence for families and workers across the province.”

The insurer, Alternate Risk Services, previously stated that the total claims related to iPro will exceed $30 million.

RECO had already fast-tracked payment of 50% of commissions owed. The regular said full payment could begin as early as next week, depending how soon brokers apply for compensation through Alternative Risk Services.

Photo: iPro