O
ntario’s Ford‑era government has appointed an administrator to take over the Real Estate Council of Ontario (RECO) after the iPro Realty scandal. Minister Stephen Crawford announced the decision in a letter to RECO’s CEO and board chair, naming Jean Lépine—an executive with experience in communications, government relations, investor relations and sustainability—as administrator effective Dec. 1. Crawford said the move follows growing consumer, board, realtor and broker concerns about the regulator’s handling of the case and aims to restore confidence and protect Ontarians.

    RECO’s investigation on May 19 revealed that iPro Realty’s co‑founders diverted roughly $8 million from trust accounts earmarked for down‑payments and commissions to cover operating costs and investor payouts. The regulator did not close the firm or freeze assets until August. An independent audit by Dentons Canada LLP found that RECO’s former registrar had strayed from standard procedures for misappropriation of trust funds, and that the board was not informed of the issues until Aug. 10—two days after a settlement with the principals. The audit highlighted significant deficiencies in RECO’s processes, culture and ability to regain public trust.

    Under the new arrangement, Lépine will take on all powers and duties of RECO’s board, officers and members. The Ontario Real Estate Association welcomed the appointment, arguing it will help the regulator deliver on promised reforms and protect both consumers and registrants in what is the most significant financial transaction many families undertake.

    RECO has not yet issued a response to the administrator appointment. Earlier this month, the regulator stated it was fully committed to implementing Dentons’ recommendations on an expedited timeline and to continuing its statutory mandate to safeguard public interest and support real‑estate professionals.