The Saskatchewan Real Estate Commission has defended the penalties it imposed on two real estate agents tied to the collapse of Epic Alliance, pushing back against criticism from the Saskatchewan Realtors Association (SRA) that the discipline was inadequate.
In a multi-page statement posted to its website on a Friday, the commission said it does not answer to the SRA, describing the group as one of its stakeholder organizations rather than an authority over its decisions. The commission said what the SRA called a “wholly inadequate response” actually represents the most punitive sanctions on record in Saskatchewan. It said it enforces The Real Estate Act, Regulations and Bylaws rather than MLS or SRA rules, and that it must conduct fair, unbiased investigations with due process for registrants facing complaints, a process it said cannot be rushed.
The commission noted that no clients involved with Epic Alliance filed complaints or launched lawsuits before its two-year investigation began.
Suspensions and Fines
In a 34-page decision, the commission suspended agents Paul Chavady and Jerry Hallgrimson from trading real estate for six months each and ordered them to pay $100,000 fines apiece. Both men sold more than 100 homes on behalf of Epic Alliance, the Saskatoon-based real estate investment firm that raised more than $200 million before collapsing in 2022. At the time of its collapse, the company had raised more than $211 million from investors while controlling more than 500 properties in Saskatoon and North Battleford.
Mike Russell, a lawyer who represented dozens of investors who lost money, criticized the ruling, saying it found no evidence Chavady made money from the scheme and calling that conclusion “a joke.”
How the Agents Were Involved
Chavady and Hallgrimson were recruited by Epic Alliance as part of its “hassle-free landlord” program, under which investors bought homes, took out mortgages and had Epic Alliance manage the properties. The commission found both men failed to include required information on offers 106 times and failed to properly represent the interests of buyers 36 times, among other breaches.
Chavady told CTV News Saskatoon he had no idea what Epic Alliance was doing until the company came under investigation, describing the commission’s findings as “paperwork issues” that he acknowledged but said were relatively common practice at the time. He said the purchase price, possession dates and conditions had already been negotiated before his involvement, and his role was limited to preparing documents.
Epic Alliance’s co-founders were never criminally charged, but they were fined $300,000 and banned from trading investment products for 20 years by the province’s consumer affairs watchdog. The commission said Chavady and Hallgrimson were terminated by their brokerage on a Thursday and are no longer registered to trade real estate in Saskatchewan.
This article references reporting from:
