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    RECA names new chair; fraud controversy remains unresolved

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    Real Estate Council of Alberta (RECA) has named Cynthia Moore as its new board chair, replacing Elan MacDonald.

    RECA announced on Friday that Moore’s three-year term will begin Dec. 1. MacDonald’s term is set to expire at the end of this month.

    Moore is the former president of the United Conservative Party of Alberta, where her leadership contributed to a successful re-election in 2023 for Premier Danielle Smith. 

    Her career spans management consulting, major non-profit development, and executive leadership across Alberta’s public, non-profit, and arts sectors, including as chair of the Alberta Foundation for the Arts. 

    “I look forward to working closely with (Moore) as we continue to advance RECA’s consumer protection mandate and implement our new strategic plan,” said Stacy Paquin, RECA CEO. 

    In a statement, outgoing chair MacDonald said it was a privilege to guide RECA through “an important phase of reform and renewal.”

     

    Drinkwater fallout continues

     

    Moore will step into the role after a difficult year, which saw the regulator scrutinized for its handling of a high-profile Calgary fraud case. 

    RECA has been under fire by consumers and real estate professionals for its handling of the Eric Drinkwater fraud scandal. The former Calgary Realtor, who was suspended in the spring and received a lifetime ban from real estate in September, admitted to defrauding at least 71 people out of more than $3.5 million through a Ponzi scheme.

    It is understood that the majority of Drinkwater’s victims have not yet received compensation. Several victims who are trying to access funds through the Consumer Compensation Fund, which is set up to recover financial losses caused by the actions of licensees, have told Real Estate Magazine in the last week that they have not been successful. 

    Drinkwater’s scheme centred around falsified bridge loans for non-existent real estate transactions. The matter came to light when Drinkwater, a Realtor of almost two decades, was charged by Calgary police on May 8. Police reported 16 victims came forward with a combined loss of more than $1.9 million. The criminal case is still before the courts.

     

    Hare and Lem RECA hearings postponed

     

    RECA has twice postponed disciplinary hearings for Pat Hare and David Lem. The hearings were originally scheduled for August. 

    By law, initial hearing dates must be scheduled within 60 days, RECA said to Real Estate Magazine, clarifying why the hearings have not yet been held.

    “Many licensees then engage legal counsel to advise them; counsel for all parties go through a pre-hearing process before the independent hearing panel schedules a formal hearing. Everyone is entitled to due process, and this is something the panel takes very seriously,” said RECA.

    Hare is the well-known founder of the longtime Calgary brokerage formerly known as Re/Max Central, where Drinkwater was employed during the time he carried out his scheme. 

    The hearing panel is supposed to determine whether Hare is deserving of sanctioning for allegations that he knew about and benefited from the fraud.

    Editor’s note: This story was updated to include that MacDonald’s term was scheduled to conclude this month. A comment from RECA has also been added to provide context on the scheduling process for disciplinary hearings.