Nearly five years after the collapse of Epic Alliance, a $211-million investment operation, two Saskatoon real estate agents tied to the scheme have each been fined $100,000 and suspended for six months by the Saskatchewan Real Estate Commission (SREC).
In disciplinary decisions issued Sept. 29, SREC sanctioned Paul Chavady and Jerry Hallgrimson following an investigation into their handling of 147 transactions connected to Epic Alliance, which the commission described as one of the largest real estate investment schemes in the province’s history. The two agents, who had worked at Royal LePage Varsity, have since had their registrations terminated by their broker.
SREC’s decisions mark the first disciplinary action addressing the conduct of real estate agents involved in Epic Alliance, after sanctions were previously issued to the company’s founders over securities violations.
What the Investigation Found
Chavady and Hallgrimson worked with Epic Alliance from 2019 until October 2021, when the Financial and Consumer Affairs Authority (FCAA) issued a temporary cease trade order against the company, related firms and its principals.
SREC’s investigation began in 2024 after the regulator received an anonymous tip concerning roughly 500 transactions. The commission found the two agents failed to adequately represent buyers in 67 limited dual-agency transactions, in which they represented both Epic Alliance and purchasers who bought properties sight unseen and declined inspections. Investigators said the agents failed to adequately explain the risks of waiving an inspection or the nature of dual agency.
The commission also found the agents omitted required information in 106 offers to purchase, failed to remove conditions or amend contracts by deadline on 36 occasions, and in one case failed to disclose known asbestos to a buyer. Both agents were further found to have provided an untrue statement of material fact to the commission and withheld information during its investigation.
Each received the maximum $100,000 fine allowed under The Real Estate Act, along with a reprimand and additional monitoring and education requirements.
A $211-Million Operation
Epic Alliance ran several investment programs, including promissory-note loans, a “Fund-A-Flip” program and a “Hassle Free Landlord Program,” under which the company managed more than 400 Saskatoon rental properties for investors, many based in Ontario and British Columbia.
A court-appointed inspector found that approximately $211 million had been raised from retail investors, with the companies left holding few remaining assets. Incomplete financial records and missing servers prevented a full accounting of the group’s affairs. At the time of its collapse, Epic Alliance’s holdings included more than 500 residential properties in Saskatoon and North Battleford.
In separate FCAA proceedings, Epic Alliance Real Estate Inc. and principals Rochelle Laflamme and Alisa Thompson admitted to multiple violations of Saskatchewan securities law, and were assessed a combined $300,000 in administrative penalties along with 20-year restrictions on securities-related activities.
Regulator Faces Scrutiny Over Timeline
The delay between Epic Alliance’s 2021 collapse and the 2024 start of SREC’s real estate investigation has become a focus of criticism. SREC executive director Aaron Tetu said the regulator did not receive the anonymous complaint that triggered the case until 2024, after which it verified transaction data with the Saskatchewan Realtors Association (SRA) and proceeded with disciplinary action.
Chris Guérette, CEO of the 1,800-member SRA, said the absence of an earlier formal complaint does not fully explain the delay, noting that industry members, including herself, had raised concerns about Epic Alliance for years before the investigation began. She contrasted the pace of the real estate case with the securities-side proceedings and court actions brought by investors’ lawyers, saying no decision on the real estate trading side had come until now.
Following calls from the SRA for an independent review, the FCAA confirmed that Saskatchewan’s Superintendent of Real Estate will engage a third party to examine the province’s real estate regulatory framework.
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