The Ontario government has dismissed the entire board of directors of the Real Estate Council of Ontario (RECO) following a scandal involving iPro Realty. Premier Doug Ford described the situation as a "total mess" and announced the government's decision to take control of the regulator.

Jean Lépine has been appointed as the new administrator of RECO, effective immediately. He will assume all powers and responsibilities previously held by the board, officers, and members of the organization. This change comes after significant concerns were raised about RECO's ability to protect consumers from fraud and theft.

The iPro Realty scandal involved the co-founders of one of Ontario's largest brokerages, who allegedly disbursed over $10 million from trust accounts that held consumer deposits. RECO faced criticism for allowing these individuals to continue operating their business for three months without alerting the public to the financial breach. During this time, they conducted more than $700 million in residential real estate transactions.

In a letter to RECO's board chair and CEO, Stephen Crawford, the minister responsible for RECO, stated, "To prevent serious harm to the interests of the public and consumers, I have determined that it is necessary to appoint an administrator to assume control of and responsibility for RECO." Lépine's role will include implementing measures to restore public trust in the organization and the real estate sector.

Lépine, who has a background in communications and government relations, will earn $2,000 per day for his services, with a maximum remuneration of $500,000. He is expected to deliver a plan for improving RECO's governance and operational policies by March 31. Additionally, he must provide a progress report by June 30 and a final report by December 31, which will be made public.

At an industry conference, Premier Ford expressed his commitment to addressing the issues at RECO. He emphasized the importance of ensuring that real estate agents affected by the iPro case receive their owed commissions. "My biggest concern is get that money into their pockets. If we have to cover 'em, these people work their backs off. They deserve the commission," Ford stated.

The government has taken these steps to ensure that RECO can effectively protect consumers and restore confidence in the real estate services sector. Lépine's appointment marks a significant shift in the oversight of Ontario's real estate regulator, which is funded by over 100,000 members. The ministry's order also allows for additional work-related costs incurred by Lépine, up to $35,000.