True Patriot Love

00:00:00.000 today i have uh mark morris with me from legalclosing.ca uh hi mark how you doing

00:00:30.000 i'm doing great how are you good good i'm really happy today we're talking about a really

00:00:36.400 interesting topic for me because i've been following it since may and it's basically the

00:00:41.280 ipro crisis the scandal that deals with rico and real estate and i'm going to kind of jump right

00:00:47.760 in mark so you know this uh investigation started in may uh the co-founders of ipro realty

00:00:57.440 brokerage illegally dispersed uh 10.5 million i know that number bounced around a little

00:01:04.000 from its consumer deposit and commission trust accounts um and then rico waited a bunch of time

00:01:11.360 so this kind of you know i think when we heard about it uh and then they started to tell the

00:01:17.440 public and its own industry about what went down and then you know subsequent to that uh

00:01:24.080 rico went out and cut a deal um to make to make sure there's no fines or charges against the two

00:01:31.840 individuals the two gentlemen that uh owned ipro and then the company popped up again from what i

00:01:38.160 can understand that's what i was trying to get to the bottom of today is did they just open up another

00:01:43.440 shingle after this went down or did it did it go down and then someone will open it up after and and

00:01:49.360 that's where i need your help today yeah totally well that that was that was uh information of

00:01:56.080 what's gone on so just just because i know some of your listeners aren't real estate based

00:02:00.720 in ontario in actually most of canada for most of the professions we have self-regulation

00:02:05.520 and self-regulation means that the province itself the minister isn't actually sitting and

00:02:09.840 watching what happens instead the minister reports to or appoints an organization in brokerage

00:02:16.560 sense it's called rico the real estate council of ontario and rico is there to regulate and govern

00:02:23.040 and ensure that realtors and brokers and brokerages live up to that most sacred trust

00:02:29.920 that being uh the permission granted by the province to collect people's monies and hold them and ensure

00:02:38.960 that they are safe and that is the very thing that uh ipro did not do in this case and the very thing

00:02:47.120 that you correctly pointed out the regulator failed to regulate and it's a bit early to say that

00:02:53.520 definitively but it's signs and preliminary signs are seemingly indicating that not only did rico

00:02:59.680 abjectly fail in its regulatory requirements and tasks but they may very well to the point that you

00:03:07.920 were just bringing up have actually whether knowingly or unknowingly facilitated and abetted uh the

00:03:16.000 people who perpetrated the fraud uh by allowing them to maintain their asset base and we can talk

00:03:21.120 about that for sure right wow so you know any any idea so they they disperse this money they took it was

00:03:30.640 sitting in a trust account they took it they used it i guess personal needs they used it for company costs

00:03:37.120 expenses i guess to keep moving forward is that is that kind of the inkling that's coming out

00:03:44.480 we don't know if it is for that purpose or whether it was to help one of the principals own

00:03:50.320 six properties in ontario or whether it was just raw fraud i mean we have no knowledge of what's going

00:03:57.360 on nor what that money was used for forensic auditors will be involved and they will produce a report

00:04:03.920 undoubtedly to dentons who is the auditor that rico has now appointed and that the province has

00:04:09.040 seen fit to monitor uh we'll find all this out but right now it's too early to say what was done

00:04:14.880 with the money what is very clear is that the money was removed and it doesn't matter what it was used

00:04:20.160 for the sacred trust has been therefore violated with ontarians so i i mean between you and i i don't

00:04:25.760 really give a crap what it was used for it's totally irrelevant trust funds are sacred they were

00:04:30.640 touched plain and simple no excuse yeah good point i know i agree i just i'm sort of curious you know 0.98

00:04:38.320 being a former cpa i'm i'm constantly intrigued how come it takes so long to find this out right

00:04:46.000 uh the forensic guys that i worked with years ago when i was practicing uh were super good uh very

00:04:53.520 meticulous and fast right they would come in quickly move through your books they could tell you within a

00:04:59.200 a couple days where the money went how um so i'm always curious because this is going to take from

00:05:04.400 what i was reading today this whole kind of audit is going to take place to the end of this month and

00:05:11.360 report coming out in october mark is that what they're thinking timeline let's remember first of all

00:05:17.440 that ipro is huge and when i say just for context 2400 agents practicing means that the amount of money that

00:05:27.200 is flowing in and out is an exceptionally large amount and the forensic auditors are going to want

00:05:33.760 to have individual accounting on files that are entirely messed up if the fraud was meticulously

00:05:38.880 maintained over the course of months i ran one of the largest law firms in ontario for many years

00:05:43.440 um and we had to do daily reconciliations and we had and with with all of the resources that we brought

00:05:50.800 to bear controllers accountants you name it every single day on top of our files um it was still a

00:05:57.920 jumbled mess even though we were adhering to the law and all of our reporting requirements we never had

00:06:03.120 an issue but my god if you were trying to mess with the books uh untangling that particularly in

00:06:09.280 the context of tens of thousands of transactions it's not unreasonable to expect a month a month and

00:06:15.120 a half of dentons work to ultimately go through it given size the real you are asking which i think is

00:06:20.960 more pertinent is how did this happen in the first place why was it the case that rico failed in its

00:06:28.880 audit standards so badly and there's two separate reasons for that first is the immediacy of the event

00:06:36.640 uh honestly if they knew if they truly did turns out that we'll find out from the dentons audit but if

00:06:41.360 we find out that they truly did know about the fraud in may

00:06:45.120 uh if they permitted the owners of ipro to go ahead and maintain ownership of the trust accounts

00:06:58.800 and ownership and direction of brokerage while they knew there was a fraud for three months

00:07:03.520 that there is a problem in and of itself just in terms of the way the regulatory clapped down took

00:07:08.320 place but there's a further problem in so far as there is a vast difference between auditing a small

00:07:15.600 firm and a large firm by virtue of the fact that small firms usually fall within the panoply of the

00:07:21.520 insurance that rico itself mandates be extended so the insurance coverage in this instance is a total

00:07:28.560 of eight million dollars four million dollars for consumer deposits and four million dollars for commissions

00:07:33.680 okay if you're a small firm and you're engaging in fraud there's a high likelihood that the insurance

00:07:39.440 premiums will cover whatever the fraud is thus the general public won't be affected

00:07:46.480 but if you're a large firm that's not the case and what's more because there is systemic risk to the

00:07:53.600 system that we're now seeing in the ipro event with large firms that go down and they're not the first

00:07:58.560 large firm to go down i was the lawyer of record for red pin which didn't go down because of fraud

00:08:03.120 but went down because of bankruptcy in 2015. you know and at that point many people lost their

00:08:08.320 shirt over and above the insurance premiums and perhaps it's time for the regulator to ask

00:08:13.360 should there be separate audit tracks for large systemic risk firms versus smaller firms and is there

00:08:21.440 obviously there is a need for more immediacy upon the discovery of fraud

00:08:25.600 such that you aren't sitting around for three months and allowing the very people who may have

00:08:30.240 perpetrated the fraud who are alleged to perpetrate the fraud to try to preserve their assets and save

00:08:34.480 face right so mark just so i understand because i think i got that so the insurance coverage for large

00:08:43.760 and small is the same yes right so in this case a very this is a big ipro is a big uh company or was a big

00:08:53.520 company um and so it would be covered up to eight million four million and four million four million

00:09:00.800 for consumer deposits four million for commission now if i may just give an editorial for a second

00:09:07.040 because i don't want people freaking out commission above four million people are going to the realtors

00:09:13.600 are going to unfortunately face a pay cut consumer deposits if there are deposits in excess of the four

00:09:20.640 million dollars that are missing that is to say let's say they embezzled five million four million is

00:09:25.520 covered by insurance one million is a discrepancy there is no way in my mind that rico can do anything

00:09:33.120 except cover it out of their own fuzz because the sacred trust will be broken with consumers forever

00:09:39.520 you either believe that your dollars are safe when you put them in a broker trust account or you do not

00:09:44.720 and to rico's credit because rico has had a bit of a change of a bit hurt and has been acting a bit

00:09:51.040 differently last week once the disinfectant of sunshine was brought to bear rico has said look ipro

00:09:58.800 you are to continue to dispense any money from trust that is consumer deposit related so that

00:10:05.280 we do not stop any closing from taking place and so that there is no breach of agreements

00:10:10.080 and so it's seemingly the case that rico is going to step up and protect consumer deposits because

00:10:14.720 what choice do they have if they don't do that then fundamentally brokerages themselves that have

00:10:19.600 chosen to self-regulate and have been given the privilege of self-regulation have failed in that

00:10:24.080 fundamental task and as a result every dollar that a consumer has to eat is directly affecting the

00:10:31.200 credibility of realtors writ large so i do not believe that realtors will actually allow or rico will

00:10:39.040 allow itself to see a single penny of consumer deposits lost that is the way they're conducting

00:10:44.480 themselves right now in terms of commissions that's going to be a different story entirely okay so and

00:10:50.880 rico sorry and just you know good knowledge base for me and you know my wife does real estate so 1.00

00:10:57.360 um trying to understand a little bit of more of it so rico gets its funds from fees charged to realtors

00:11:04.960 correct right and i assume they have their own insurance uh well no they don't they have an insurance

00:11:12.000 provider called claims pro they don't self-insure they use an insurer called claims pro okay so they would

00:11:18.800 backstop the loss i guess whatever funds they have that they haven't used and then they would backstop

00:11:25.360 to make sure consumers aren't aren't out whatever money's the delta let's call it right delta is okay

00:11:32.400 that is my conjecture that isn't something that is but but honestly it's a conjecture predicated upon

00:11:38.640 some pretty obvious conclusions that you need to draw from from where we are okay and if they made a

00:11:45.760 statement like if they if they said anything to that effect or they've been pretty quiet they haven't

00:11:50.480 said they they have said that every single transaction that is concluding not the commissions

00:11:57.920 but consumer deposits need to be paid out as they are demanded and that ipro will continue to do so

00:12:04.000 what that leads you to believe is that they're clearly not doing a pro rata analysis and as i doubt

00:12:09.600 very much doubt that they're going to leave one poor sucker at the end who had the transaction at the very

00:12:14.240 end with zero dollars it's highly likely given their actions that they intend to make consumers whole

00:12:21.040 which is their charge which is their mandate and frankly is what i would expect from a regulator that

00:12:26.480 takes itself seriously right okay and then realtors i guess realtors are the ones who probably

00:12:34.480 if if again it's a there's a delta they're gonna have to figure that out not if not if you see

00:12:40.800 there will be a delta um for commissions but that's not the big story that's not the big

00:12:47.600 big story is the one everyone's missing ontario for i know you have a national audience ontario has

00:12:54.480 like vancouver experienced the massive real estate boom particularly in new construction that led to

00:12:59.360 itself until about 2022 2023 roughly and a construct new build construction means condos in ontario in

00:13:07.360 toronto and condos have a five-year development cycle this is important because you have to

00:13:13.120 understand the way realtors are actually paid on commissions they are paid two they're paid four

00:13:18.240 percent of the purchase price two percent up front and normally two percent up front two percent on closing

00:13:25.120 the problem the undisclosed problem where the vast majority of the hit is going to take to be taken place

00:13:32.560 is when builders refuse to pay the additional two percent on closing because they have a contract

00:13:37.280 with the defunct entity called ipro it's when that two percent commission comes due which is possibly

00:13:44.560 with not with i'm not trying to exaggerate this but tens of millions of dollars that is due in

00:13:50.160 owen because we had 2400 practicing agents in the height of market in ontario in the core of where

00:13:57.600 real estate central took place and we have all of these condos closing the likelihood of builders

00:14:03.840 who are very much hurting right now because of where they are in the real estate cycle and looking

00:14:08.240 for any cost savings possible to deny the two percent because they know that ipro either won't enforce

00:14:14.560 or is not a viable entity depending on what happens to it is very real and that's where and that's not

00:14:20.960 covered by insurance and it's not identified yet because so many people haven't yet hit that stage

00:14:27.760 and they don't realize they're not being paid but that's where the true pain point will come for

00:14:31.680 realtors from this scandal oh wow i never even thought of that you know you hear the condo you

00:14:37.760 know conundrum all the time especially in ontario with the number of vacant condos and things going on

00:14:43.440 and renting condos wow just another blow to the condo world that's well actually it's not a blow to the

00:14:49.760 the condo world it's going to actually support the builders bottom lines but yeah come at individual

00:14:54.960 expense and all the people who worked and put their lives and sweat and tears and everything else into

00:15:00.000 this are being let down because the fraud yeah no i get it so what happens to ipro like what happens to

00:15:08.560 so you know i hear it opened up so uh under icloud realty is that the 17 offices re reconfigured

00:15:17.280 this to my mind is the real scandal um so let's first understand i i know people don't like to

00:15:25.200 speak law but you'll permit me because some for some crazy reason 25 years ago i decided to apply

00:15:30.000 to law school and now i speak this language so the be all and end all is that um there are two different

00:15:37.840 ways of acquiring a property the first is acquiring the shares so the owners own shares in a company they

00:15:44.480 sell the shares that company continues to exist and you can put a new brand name or anything else but

00:15:50.240 the shares fundamentally pertain to the same company so all the assets and liabilities continue with that

00:15:58.080 the other way you can sell a business is through what's called an asset sale where someone goes ahead

00:16:03.840 and incorporates a brand new company and agrees to purchase out the underlying assets of the brokerage

00:16:08.960 brokerage underlying assets of the brokerage to be critical and clear are the locations to be sure

00:16:16.880 but the fundamental value of the brokerage and this is where the real scandal comes

00:16:21.200 the real scandal in my eyes the fundamental value of a real estate brokerage is the agents

00:16:26.400 now let's talk about the way businesses are valued anywhere in the world you take the net operating income

00:16:32.960 which is your expenses after tax your profit after tax before sorry before tax but after your expenses

00:16:39.680 take your net operating income and you divide that by what is effectively a discount rate so as an

00:16:47.120 example if you make a hundred thousand dollars a year and the discount rate for brokerage businesses

00:16:51.680 is five percent you do a hundred thousand over five percent that gives you the present value what

00:16:57.440 someone should make for the business hope that makes sense yeah anyone who engages in the fraud

00:17:04.160 fundamentally can expect their um their assets because the brokerage assets are not hard assets

00:17:12.240 they're people to leave and what happened here was that the two owners of this business were permitted

00:17:21.280 to conduct an asset sale selling out their brokerage locations to a new company owned by someone else

00:17:31.200 and they were then allowed to tell all of their primary assets being the realtors themselves

00:17:39.760 that they were semi-retiring and they were just transferring this over to another entity now here's

00:17:46.720 where the scandal gets bad here's where the scandal gets bad the scandal get because that that's fine

00:17:53.440 they were trying to do what they were trying to do they're fraudsters they they're whatever they're

00:17:56.800 trying to preserve their asset values as as they're on a sinking ship sure but where the scandal gets

00:18:03.040 bad is that rico the real estate council of ontario facilitated it rico the realist this is where

00:18:10.320 this is where it starts to stink to high heaven separate and apart from the fact that they sat on the board

00:18:14.560 rico arranged to mass transfer all of the underlying value of the brokerage which was owned by the fraudsters

00:18:28.400 to a brand new brokerage thus preserving the assets a task it has no mandate to perform

00:18:37.440 it is up to other realtors upon discovering this fraud to make a decision as to where they are going to

00:18:45.440 go instead they were given three days notice and told that if they did not positively go to a different

00:18:53.120 brokerage they would be mass transferred to this new place called icloud which by the way has its own

00:19:00.320 problems with apple now i'm sure because who names their brokerage icloud i don't know

00:19:08.560 put that aside entirely right now you can tell how much work they did because they were in such a race 0.99

00:19:13.920 to just kind of get something going now here's the the further scandal is that on any objective metrics

00:19:19.840 the very people who worked within ipo ipro are now running icloud they're not disassociated in any

00:19:29.840 manner or respect they are some of the same principles they aren't the people who conducted the fraud to

00:19:35.440 be sure but they're the sister of their cousin of their previous broker of record of who the heck knows 0.98

00:19:41.440 but they're not they're not new so not only did were they given time by the regulator to go ahead and

00:19:48.000 establish a new company not only did the regulator then facilitate the transfer of the underlying assets

00:19:55.200 to this new entity which they knew or should have suspected was affiliated but they then to boot let

00:20:04.480 these people with who were sitting on their board until 2023 off with the slap of the wrist so that

00:20:10.480 they could claim to their entire staff that they had semi-retired and everyone was to fet their monumental

00:20:16.080 achievements over the course of 20 years of building up a brokerage with 2400 people it beguiles

00:20:22.000 belief and to the realtors credit i'm talking about the realtors of ontario realtors were revolted by

00:20:28.640 this because not only did it smell but everyone understood that people were making off with eight

00:20:34.320 to ten million dollars of money at the expense of every single person who has worked to engender trust

00:20:40.080 trust with the public and rico the people we pay to regulate and ensure this doesn't happen

00:20:47.760 they were going ahead and facilitating this or at least facilitating on on space and by the way if

00:20:53.200 you're wondering why the minister himself stepped in on friday and said not only is denton's going to 0.96

00:20:58.880 be doing this review but we sure am i allowed to swear on your show we should we sure as shit are going to be 0.97

00:21:05.040 regulating this to high hell and we're going to be making sure this is clean it's because it smells as 0.87

00:21:10.240 bad as it sounds okay this is i didn't know that thank you the so what happens to iprot is it is it

00:21:17.520 fold is it a bankrupt company now or is it uh has it been has it has been sold to your point about asset

00:21:24.800 shares and and uh uh share sales is this it was it a transaction oh god so i hope it hasn't been sold no

00:21:33.600 it's been taken over by the regulator i hope it has not closed if the regulator has any sense

00:21:40.080 whatsoever there is no way in hell they will close ipro now that doesn't mean that they have sense

00:21:45.680 by the way i mean look at how the way they've conducted themselves to date but if they were 0.89

00:21:49.200 asking me for legal advice the first thing i would say is to hell you are closing this down you are 0.93

00:21:54.480 keeping this active why remember what i talked to you about about all those contracts that have been

00:21:59.200 signed with ipro and those new builds well to keep those contracts active and to be able to claim

00:22:04.560 commissions you need to keep the entity alive otherwise there is no contract so i sure as heck

00:22:12.160 hope and i suspect that ipro as an entity will remain open but its authorities and the signing

00:22:20.240 authorities and the actions will be governed by people who are directly uh appointed by rico

00:22:28.000 such that the old ownership has no say in how it conducts its affairs going forward

00:22:34.160 okay so do we icloud help me out a little bit do we know who owns icloud we do and who who owns icloud

00:22:44.000 now it's as as i discussed i i don't feel comfortable saying it because i i wasn't affiliated before

00:22:49.200 icloud but i'll tell you there's two different entities that have been established that are taken that

00:22:54.320 that are where it's acceptable there's something called sky something or another and on icloud

00:22:59.360 and both of them are owned by affiliates like that's all i'm comfortable saying they are people

00:23:04.800 okay for the principles or something they are not independent third parties oh okay i got you that's

00:23:13.360 what i was trying to figure out when you said so they have been they have a previous affiliation or

00:23:17.440 current affiliation with ipro correct and my best my guess is that there's whole trust shares being

00:23:24.400 held in trust for the fraudsters or there's some sort of a relationship this is all conjecture all

00:23:30.080 conjecture i want to be very clear i have no proof right but yeah it's not hard to understand what's

00:23:35.200 going on like like you can just see it you can smell it this is where if i was conducting an audit this

00:23:40.720 is where i'd be zooming in right no very interesting grapes you know it unravels because you don't read

00:23:47.040 much you know this is new kind of it because we're understanding the background and i think for for

00:23:52.560 people like myself who aren't in the industry it's very interesting so they talked about the ombudsman

00:23:58.320 so let's talk about that for a minute so now this thing on rolls they're talking about maybe rico

00:24:03.120 having a more closer relationship or an oversight under the ombudsman of ontario yeah what

00:24:10.560 your thoughts on that and i have my own thoughts on that but uh i'd like to get what yours are and

00:24:16.880 understand what you're thinking this could have happened under an ombudsman this could have happened

00:24:25.120 under um so so you have a more conservative show okay so i'm gonna i'm gonna quote a conservative

00:24:32.480 thinker um i was privileged to go through university and i had jordan peterson as a professor

00:24:40.800 um who taught me in a class of 12 people around in a circle because before he was famous and before

00:24:47.440 he went into a whole bunch of political dialogues and diatribes he was quite brilliant in his own

00:24:53.680 field where he taught a course called maps of meaning and the purpose of i'm sorry if i'm wandering

00:24:59.120 here but it's actually very interesting is his maps of meaning came down to something quite seminal he

00:25:06.240 said look let's examine all the world's religions all the world's cultures he's like what is

00:25:12.400 interesting about them is that they have passed stories on from generation to generation even

00:25:16.960 before the advent of writing and those stories remained i believe speaking for jordan i believe

00:25:23.520 that there is something fundamentally true about stories that are passed on from generation to

00:25:28.720 generation to generation there has to be an essence of humanity in those stories that makes sense to

00:25:34.640 people else they would stop telling the story so we started examining all of the biblical stories and

00:25:39.360 vishnu and krishna and and and the yin and the yang and the stories of disney and pinocchio and you

00:25:45.280 should listen to the maps of meaning they're available on podcasts it's actually fantastic and christianity

00:25:49.520 and judaism and islam and god knows what but they all have the same story which is the fall from grace 0.86

00:25:53.360 into the redemption now that's a christian motif but it's the same story over and over again that you have

00:25:58.720 to fall before ultimately you redeem yourself and and and that is a truism of humanity it's a truism of

00:26:05.040 life rico has fallen um sunshine has been brought to bear we have a real hardship that is ahead of us and

00:26:12.480 yet it is through that fall that we get grace it is through the fall that ultimately we can you know have

00:26:19.920 knowledge uh adam and eve and and and and christ in the resurrection that story of humanity is being

00:26:26.960 replicated right now in the story of rico if you're asking what caused this it's that rico frankly

00:26:35.440 was clearly rotten i mean in my view this is an editorial again but it was rotten i mean for a

00:26:41.760 registrar to swipe a deal where 10 million dollars is taken and all you get is the ability to claim

00:26:46.960 that you've semi-retired with a birthday cake message and then preserve your assets as it goes

00:26:51.520 over to another company and then give everyone a celebratory hug you know and avoid provincial

00:26:58.800 prosecution to boot like all of it stunk all of it was a low ebb and yet the story of redemption in

00:27:08.320 cycles is such that we probably will have much stronger enforcement because people were so disappointed

00:27:14.880 because sunlight was brought to bear and that's the fundamental human story and whether we have a

00:27:18.960 regulator or we don't that rot was there and needed to be outed that rot has now been outed to some

00:27:26.560 degree i'm hopeful that we'll see the story of humanity replicate itself with you rico and ultimately

00:27:32.800 for us to have a stronger regulatory body that will last until the next candle but you know at least

00:27:37.520 we'll get we'll get our next 20 years or 30 years in and hopefully people have learned from this

00:27:42.480 experience such that we regulate properly and understand the privilege that the province has given to us

00:27:47.280 to ultimately protect ontario's cherished monies you you can't conduct fraud canada's notoriously bad

00:27:55.520 at prosecuting fraud but it's very helpful when people get to see the behind the curtains and see

00:28:02.320 just how bad they are at doing it and frankly that's probably our only chance at at a change um but

00:28:09.280 certainly change is coming in this instance and yes it may have to be in the form of an ombudsman or

00:28:13.760 maybe in the form of a regulator that has increased powers and that comes down on things like a ton

00:28:19.360 of bricks and it may be in the form of our fees being doubled as realtors such that ultimately we

00:28:24.560 get new auditors in and the new auditor paths and everything else something will change but whatever it

00:28:31.120 at its heart you need to have people who are serious about their mandate i agree i agree mark you

00:28:36.720 know it's just as i'm listening to you and going on i'm thinking to myself this thing is going to go on

00:28:42.480 we're going to be hearing about this probably for years as people litigate this try to get their

00:28:47.920 money you know developers real estate agents so this this is probably if you had to guess how long

00:28:55.360 do you think we we hear about the ipro issue i think this will be out of the news very shortly now

00:29:01.440 that the province is involved and it will rear its head again in a month or two's time when the report

00:29:06.400 comes out um i think so long as consumers are made whole um this will become something of the

00:29:13.520 industry discussion more than it is the public discussion it's been getting front page news of

00:29:17.920 the toronto star and the global mail and the national post for some time that will kind of go away

00:29:23.600 uh but i think the scare that has been put into our regulatory bodies and realtors as a whole is

00:29:31.600 something that will not dissipate uh i do think that the lawsuits will continue for a long time

00:29:36.560 but those will be under the curtain people people will lose their interest i do however think that

00:29:40.880 there was enough sunlight and disinfectant that was brought to bear that whatever the outcome

00:29:48.000 fundamental change is afoot and they rico will be proceeding in a very different way

00:29:55.200 in terms of its enforcement mechanisms going forward now let's try to bring that same gusto to the law

00:30:00.640 society um professional engineers the architects and everyone else because there's a whole bunch of

00:30:07.520 other self-regulatory bodies as well that let's be very clear could do a better job there is a lawyer

00:30:12.800 presently right now with three million dollars in missing trust funds in brampton uh cartel and buoy

00:30:19.280 just walked away um you know like to hell with this if you take a penny of consumers funds then go to jail 0.89

00:30:28.640 this is not something that we either are going to be serious about this or not and if we're not let

00:30:34.880 me know because i'm sitting here with a trust account with 15 million dollars on a daily basis

00:30:38.800 and tahiti seems really nice like honestly i i don't i i would very much like to work on my tan

00:30:44.000 so tell me if we're being serious about this or not and there's a whole bunch of professionals

00:30:47.760 who i'm saying this as a joke obviously i'm not going to ever do it with trust funds but there are

00:30:51.600 people who are on the cusp and regulatory enforcement keeps them in line and we have an obligation as

00:30:56.560 canadians to treat this more seriously and to understand that regulation means regulation and

00:31:01.440 prosecution where ultimately it is warranted yeah well said mark i agree and you know i want to ask

00:31:09.280 you a favor before we go i just when the report comes out i'd love to have you back on the show

00:31:13.680 because i want to dissect that report you know your background my background in finance i'd love to sit

00:31:19.760 down and just go through it and and see what the outcome is this is so you know when i started following

00:31:24.640 this i was so curious to where this ended up it's always to me it's the final report when it comes

00:31:29.920 out you know to read the where people land and how they saw it so i'd really appreciate if you have

00:31:35.760 time when we get the final report and we jump back on um and i want to thank you i know we did this you

00:31:41.760 know mark was uh gracious enough today to jump on this podcast because this is something that we had on

00:31:49.040 our list we've been wanting to do for a few weeks so i really appreciate it uh mark morris uh principal

00:31:54.960 from legalclosing.ca uh thanks for your time and i look forward to talking to you again soon it's a

00:32:01.280 great pleasure thank you for being on top of this it matters

00:32:15.200 so

$10.5M Missing： Inside Ontario Real Estate’s Biggest Wake-Up Call ｜ Follow the Money

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