An Ontario real estate firm recently penalized by the industry’s regulator is disputing the “unwarranted” sanctions placed against it.
Henein Hutchison Robitaille LLP, which has been retained by Save Max First Choice Real Estate, said in a statement Friday that the Real Estate Council of Ontario’s “disproportionate” actions against four Mississauga-based brokerages are causing “serious harm” to the firm’s business, agents, brokers and clients.
Earlier this month, RECO froze the brokerages’ trust accounts over allegations that roughly $2.7 million was disbursed unlawfully from those accounts.
“This is not accurate. This did not occur,” Henein Hutchison Robitaille LLP’s statement reads.
“Contrary to the rumours circulating about what is in Save Max’s trust accounts, no funds are missing.”
RECO alleged the money was typically replaced before month’s end, when brokerages are required to complete a reconciliation of a real estate trust account.
The money, RECO claims, was used outside of the terms of the trust, including for loan payments, property management fees, taxes, credit card balances and vendor services.
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RECO also suspended two brokers and issued notices of proposal to revoke registration against them and the brokerages.
Henein Hutchison Robitaille LLP said RECO is targeting Save Max in a bid to save its reputation as the provincial government considers taking control of it.
“It is well known that RECO failed in its regulatory obligations in handling the iPro Realty trust fund misappropriation scandal,” the law firm said.
“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.”
Samantha Pinto, chief regulatory modernization officer with RECO, told Global News they won’t comment on specifics to “protect the integrity” of active regulatory action.
“However, the misuse of Real Estate Trust Accounts funds is a serious breach of the law and of public trust. The law is unequivocal: money held in Real Estate Trust Accounts does not belong to brokerages,” Pinto said.
“It cannot be used, temporarily or otherwise, for operating expenses, cash-flow management, or any purpose outside what the law expressly permits. Conduct that undermines these obligations will not be tolerated.”
In November 2025, Ontario’s minister of public and business service delivery said an audit of RECO identified issues with its practices, processes and procedures.
The audit investigated RECO’s handling of what it describes as iPro Realty’s “misappropriation” of funds.
RECO ordered iPro to close in August after shortfalls in its consumer deposit and commission trust accounts were uncovered.
At the time, RECO said the shortfalls amounted to about $10.5 million, calling it a “serious breach” of the agency’s responsibilities under the law and to its customers and agents.
However, the province’s audit government found that iPro had told RECO its trust accounts had a $10-million shortfall nearly three months before RECO acted.
RECO’s insurer, Alternative Risk Services, has projected the total losses submitted as claims to be approximately $30 million.
RECO has said it’s committed to working collaboratively with the province on reforms.
“These allegations, together with RECO’s disproportionate action, have caused serious harm to Save Max’s business, agents, brokers, and clients,” Henein Hutchison Robitaille LLP said.
“We will respond in the appropriate forum.”
— with files from The Canadian Press
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