In a troubling development for iPro Realty, cofounders Rui Alves and Fedele Colucci are accused of diverting over $30 million from trust accounts to pay themselves, family members, and related companies. This information comes from a preliminary review conducted by a forensic accountant, which is part of a larger investigation by the Real Estate Council of Ontario (RECO).

The findings were included in hundreds of pages of affidavits and exhibits submitted to Ontario's Superior Court. RECO is seeking an emergency injunction to freeze the accounts and assets of iPro Realty, its cofounders, and six affiliated companies. Justice William Black is expected to make a ruling on this matter during a virtual hearing scheduled for Monday at noon.

Forensic accountant Alessandra Leggio Di Matteo stated in her affidavit, "My preliminary analysis indicates that trust funds appear to have been used to make payments to Alves and Colucci and related parties." Di Matteo, who is a certified anti-money laundering and forensic investigator, was engaged by Dentons Canada to audit the financial discrepancies at iPro and assess the regulator's response.

The court documents also reveal a deal made on August 8 between RECO and the cofounders, which allowed them to avoid charges and fines after a $10.5 million shortfall was discovered in the brokerage's trust accounts in May. This agreement has raised questions about the oversight of the brokerage's financial practices.

RECO's application to the court aims not only to freeze the assets but also to trace the flow of the diverted trust funds and return them to their original accounts. The allegations against Alves and Colucci have not yet been proven in court.

The investigation into iPro Realty, which began in May, found that the cofounders had "illegally disbursed" $10.5 million from consumer deposit and commission trust accounts. Following this discovery, RECO facilitated the transfer of approximately 2,400 employees from iPro Realty to iCloud Realty, a move that was part of the resolution to the financial issues.

RECO has indicated that this financial breach is the largest it has ever investigated. Alves and Colucci have not responded to requests for comment regarding the injunction and have not addressed previous inquiries.

Di Matteo's review of iPro's transactions, covering the period from January 1 to August 22, 2025, was based on limited documentation, including bank statements and cheques. She noted that a more comprehensive analysis would require additional banking documents from Alves, Colucci, and iPro Realty. "A complete tracing of the trust funds cannot be completed until and unless further and full disclosure of banking documentation from (Colucci, Alves and iPro Realty) is provided and analyzed," she stated.