RECO Cracks Down on Save Max: $2.7M Trust Account Breach (2026)

RECO Cracks Down on Save Max: $2.7M Trust Account Breach (2026)

On February 3, 2026, the Real Estate Council of Ontario (RECO) launched a major regulatory strike against four Save Max brokerages in Mississauga. Following a forensic review, the regulator discovered that approximately $2.7 million in consumer deposits had been “unlawfully disbursed” and used to cover the brokerages’ private business expenses.

This action comes amidst a broader crisis for RECO, which is currently under the management of a government-appointed administrator following the iPro Realty scandal of 2025.

According to RECO’s investigation, the brokerages engaged in a “kiting-style” misuse of trust funds:

  • The Breach: $2.7 million was funneled out of Real Estate Trust Accounts to pay for loan payments, taxes, credit card balances, and vendor fees.
  • The Concealment: To avoid detection during mandatory monthly reconciliations, the funds were typically “replaced” just before month-end.
  • Targeted Entities: While other Save Max locations were found to be compliant, the following four branches (all located at 1550 Enterprise Rd., Mississauga) were hit with immediate sanctions:
    • Save Max Real Estate Inc.
    • Save Max First Choice Real Estate Inc.
    • Save Max Supreme Real Estate Inc.
    • Save Max Ace Real Estate.

Regulatory Actions Taken

ActionImpact
Immediate SuspensionsRaman Dua and Nidhi Dua have had their licenses suspended effectively immediately.
Freeze OrdersBank accounts for the four brokerages are frozen to prevent any further withdrawals.
Proposal to RevokeRECO is moving to permanently strip these brokerages and individuals of their registration.
Police NotificationThe findings have been referred to the Peel Regional Police for potential criminal investigation.

What This Means for You

If You Are a Buyer or Seller:

If your deposit is held by one of these four brokerages, you cannot access it directly through the firm.

  • Insurance Claim: You must file a Consumer Deposit Insurance claim through RECO to recover your funds.
  • Current Deals: Contact your lawyer immediately to discuss how to proceed with any pending closings.

If You Are an Agent (Registrant):

Approximately 400 agents are affected by these suspensions.

  • Unpaid Commissions: You must file a Commission Protection Insurance claim to recover any money owed to you.
  • Transferring Licenses: Affected agents will likely need to move their registration to a different, compliant brokerage to continue practicing.

A Pattern of Instability?

The Save Max case is the latest in a series of trust account failures that have rocked the Ontario real estate industry:

  1. iPro Realty (2025): ~$10 million missing, leading to the resignation of RECO’s CEO and government intervention.
  2. HomeLife Today (2025): ~$580,000 shortfall.
  3. Save Max (2026): $2.7 million misappropriated.

Industry critics, including the Ontario Real Estate Association (OREA), are calling for RECO to be folded into a more powerful financial regulator like FSRA (Financial Services Regulatory Authority) to ensure better auditing and consumer protection.

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