Former Calgary Realtor Eric Drinkwater, facing $1.9-million in alleged fraud charges, may have his license revoked after a regulatory hearing on Thursday.
Drinkwater admitted to orchestrating a Ponzi scheme affecting 71 confirmed victims, with potentially more undisclosed, during a virtual disciplinary hearing conducted by the Real Estate Council of Alberta.
Due to the severity of Drinkwater’s actions, RECA’s registrar office did not advocate for a specific penalty, leaving the decision to an independent panel.
However, RECA’s lawyer, Andrew Bone, presented a previous case to support a lifetime ban as a possible outcome.
Drinkwater’s license has been suspended since June 2024.
“Conduct on this scale is unprecedented for a RECA hearing,” said Bone. “Drinkwater has participated in serious and extensive fraud over the course of his dealings. The nature of this breach is extremely serious.”
The panel has up to 60 days to issue its written decision, which will be made public after a 30-day appeal period.
Drinkwater’s admissions
The fraudulent scheme reportedly occurred between March 2020 and February 2024.
During the hearing, Drinkwater confessed to fabricating bridge loans for non-existent real estate transactions under his former employer, Re/Max Central.
In reality, the transactions were fictitious, and the documents he provided were fraudulent.
As a Realtor for 19 years, Drinkwater acknowledged targeting past clients, fellow Realtors, and the general public.
“The mandate of RECA includes protecting against, investigating, detecting, or suppressing fraud. Drinkwater’s actions directly undermine this mandate,” stated Bone.
Drinkwater was charged by Calgary police on May 8 with one count of fraud over $5,000, with 16 reported victims and a combined loss exceeding $1.9 million. He is scheduled to appear in criminal court next month.
On Mar. 3, Loberg Ector LLP announced a judgment against Drinkwater in a civil lawsuit, awarding $2.28 million in losses, $185,000 in interest, and $1 million in punitive damages to four plaintiffs.
Drinkwater claims he didn’t profit
Drinkwater revealed that the total investment in the scheme amounted to $3.5 million.
According to his agreed statement of facts, $1.1 million was used to settle scheme-related debts, with a small portion allocated to personal expenses.
“I provided all my bank statements to the Calgary Police Services, confirming that I did not benefit financially from this scheme,” stated Drinkwater, noting that he struggled to afford groceries during that period.
Drinkwater acknowledged the trust placed in him by those who invested significant sums due to his reputation as a Realtor.
“I betrayed the trust of many colleagues with my actions,” he admitted, expressing remorse and apologizing to them.
Bone highlighted that a majority of the outstanding funds have not been recovered, causing additional stress and anxiety to Drinkwater’s victims.
Maintaining public confidence
Bone emphasized the importance of setting an example with Drinkwater’s case.
“The deterrence factor is crucial. A strong message must be sent to the public and licensees that fraudulent activities will face severe consequences,” Bone stated.
Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.
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