Nearly five years after the collapse of Epic Alliance, the Saskatchewan Real Estate Commission fined Paul Chavady and Jerry Hallgrimson $100,000 each and ordered six-month suspensions for their role in a $211-million investment scheme.
Disciplinary action follows late investigation
The commission began its probe in 2024 after an anonymous tip detailed roughly 500 property deals linked to the operation. It verified the data with the provincial Realtors association before moving forward.
The two had worked with Epic Alliance from 2019, processing sales of residential homes that the firm bought and resold to investors. Their involvement ended in October 2021 when the Financial and Consumer Affairs Authority issued a temporary cease-trade order against the company.
Findings showed they failed to represent buyers adequately in 67 limited dual-agency transactions and omitted required details in 106 purchase offers. In one case, they did not disclose known asbestos to the buyer.
Both received the maximum penalty allowed under the Real Estate Act, a $100,000 fine, a six-month suspension, a formal reprimand, and mandatory education and monitoring requirements.
Regulators move to review the system
Following the sanctions, the Saskatchewan Realtors Association demanded an independent review of the province’s real-estate oversight. The Financial and Consumer Affairs Authority announced that the superintendent will engage a third party to examine the regulatory framework.
Beyond the fines, the commission imposed ongoing audits, a 2½-year registration condition, and required the pair to complete a compliance course.
Both brokers terminated the registrations of the two individuals after the decision, ending their affiliation with Royal LePage Varsity.
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Investment programs and buyer conduct
Investors were drawn to several offerings promoted by the firm, including a promissory-note loan product, a “Fund-A-Flip” scheme, and a “Hassle Free Landlord” arrangement that placed the company in charge of managing hundreds of rental units for out-of-province owners.
Under the landlord program, the firm acted as both landlord and property manager for a large portfolio of rental homes, many of which were located in the province’s central city and a neighboring community. Buyers typically completed purchases without ever visiting the properties, and they declined standard inspection processes.
Agents prepared transaction documents and transmitted them electronically for electronic signatures. However, the hearing committee determined that the agents did not adequately explain the nature of limited dual agency, the purpose of inspection forms, or the potential risks of waiving an inspection. In numerous cases, contractual conditions were left unchanged past required deadlines, resulting in contracts that remained bound by original terms.
In addition to the omitted inspection disclosures, the agents supplied a statement of material fact that was later found to be inaccurate, and they failed to provide certain material information during the commission’s inquiry.
Regulatory response and forthcoming review
The head of the real-estate regulator highlighted that only participants with real-time access to multiple listing services can track transaction volume and identify patterns that may signal risk.
Industry leaders called for an independent examination of the regulatory model. Chris Guérette, CEO of the Saskatchewan Realtors Association, noted that members had raised concerns about Epic Alliance for years and that other aspects of the case, such as securities-related investigations, moved forward more quickly.
Both the agents and their former brokerage declined to comment on the sanctions or the ongoing review.
