A former Calgary real estate agent has been permanently banned from the industry in Alberta after admitting to operating a Ponzi scheme that defrauded numerous investors of more than $3.5 million. The Real Estate Council of Alberta (RECA) issued the lifetime ban to Eric Drinkwater, who also faces criminal charges and multiple civil lawsuits.
Key Takeaways
- Former Calgary realtor Eric Drinkwater received a lifetime ban from the Real Estate Council of Alberta (RECA).
- Drinkwater admitted to running a Ponzi scheme that resulted in losses exceeding $3.5 million for dozens of victims.
- The ban follows a RECA investigation that began in April 2024 and led to a license suspension two months later.
- In addition to the ban, Drinkwater faces a $9,500 fine, multiple civil lawsuits, and criminal fraud charges filed by Calgary police.
Regulatory Body Imposes Lifetime Ban
The Real Estate Council of Alberta (RECA), the governing body for the province's real estate industry, has taken decisive action against former realtor Eric Drinkwater. The council has permanently prohibited him from working in any capacity within the real estate sector in Alberta.
This decision concludes an investigation that RECA initiated in April 2024. Following the initial findings, the council moved to suspend Drinkwater's real estate license in June 2024, preventing him from conducting further business while the investigation proceeded.
Timeline of Regulatory Action
The path to the lifetime ban involved several key steps. The investigation started in the spring of 2024, quickly followed by a summer license suspension. The process culminated in the final hearing panel decision, which imposed the permanent sanction and a fine to cover administrative costs.
Drinkwater Admits Guilt, Will Not Appeal
Drinkwater, who had been a licensed realtor with RE/MAX Central since 2005, acknowledged his actions. According to reports, he signed an agreement with RECA in December 2024, formally admitting his role in the fraudulent scheme.
Despite the severity of the ruling, Drinkwater stated he would not appeal the lifetime ban. He expressed a desire to move past the regulatory proceedings.
“I really don’t know why the panel took so long to release (its decision),” he said, adding, “I’m just excited to put it behind me.”
This statement suggests his focus is now on the other legal challenges he faces, rather than attempting to regain his real estate license.
The Scale of the Ponzi Scheme
The investigation revealed a sophisticated Ponzi scheme that caused significant financial harm. The official figures cited in the case state that dozens of individuals were defrauded, with collective losses surpassing $3.5 million.
However, Drinkwater himself has indicated that the actual scope of the fraud may be much larger. He reportedly noted that the losses were nearly double the amount outlined in the indictment against him and that many more victims were involved than those included in the police charges.
What is a Ponzi Scheme?
A Ponzi scheme is a form of investment fraud that pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from legitimate business activity, and they remain unaware that other investors are the source of funds. These schemes require a constant flow of new money to survive and inevitably collapse when they cannot attract enough new investors or when a large number of investors try to cash out.
Ongoing Legal and Financial Consequences
The lifetime ban from RECA is just one of several consequences Drinkwater is facing. The regulatory panel also imposed a fine of $9,500 to cover the costs associated with the disciplinary hearing.
Beyond the regulatory penalties, Drinkwater's legal troubles are extensive and ongoing. He is currently navigating multiple civil lawsuits filed by victims seeking to recover their lost funds. These civil cases are separate from the actions taken by the industry regulator.
Criminal Charges Laid by Calgary Police
In addition to the civil and regulatory matters, the Calgary police have filed criminal fraud charges against Drinkwater. This elevates the case from an industry violation to a criminal offense, carrying the potential for more severe penalties, including imprisonment, if he is convicted.
The combination of the lifetime professional ban, financial penalties, civil litigation, and criminal prosecution underscores the gravity of the fraud. The case serves as a stark reminder of the risks of investment fraud and the comprehensive legal repercussions for those who perpetrate such schemes.
