Alberta real estate regulator announces $1.4M payout to victims of Drinkwater Ponzi scheme

Alberta’s real estate regulator will pay out more than $1.4 million to victims of a bridge loan Ponzi scheme orchestrated by a former Calgary real estate agent Eric Drinkwater, marking the largest compensation payout in the regulator’s history.

In a May 10 statement, the Real Estate Council of Alberta (RECA) said 15 applications for compensation have been approved under the Real Estate Assurance Fund, a consumer protection fund financed by licensed real estate professionals.

Three other applications were denied for failing to meet eligibility criteria, said RECA.

The scheme

Drinkwater was permanently banned from trading real estate in Alberta in September after admitting to defrauding 71 people out of more than $3.5 million through a Ponzi scheme.

 RECA announced the lifetime ban, effective Sept. 22, following a disciplinary hearing in May where Drinkwater admitted to soliciting fraudulent bridge loans.

A real estate agent of 19 years, Drinkwater admitted to targeting past real estate clients and fellow agents, in addition to members of the public.

Drinkwater was charged with fraud by Calgary police in May 2025.

How the fund works

The Real Estate Assurance Fund  exists to help consumers recover financial losses resulting from a licensee’s fraud, breach of trust or failure to properly manage trust money. Compensation is capped at $35,000 per transaction under legislation.

According to RECA’s website, the fund provides a defined path to compensation where eligibility criteria are met, but does not cover all losses.

“Fifteen applications for compensation for eligible financial losses were approved,” a RECA spokesperson said. “Some applicants provided multiple bridge loans to Eric Drinkwater, allegedly relating to distinct properties. Each one of those loans is treated as a distinct compensation event as defined by the legislation.”

How decisions were made

Compensation decisions are subject to formal governance and oversight, including ensuring applicants have obtained proper judgments from the court, according to RECA’s website. All applications in the Drinkwater matter were reviewed and approved by RECA’s board in accordance with the legislation governing the fund.

RECA said it continues to assess applications as they are received, and that total compensation will reflect the number of eligible applications and the losses that meet legislative requirements. 

Why some claims were denied

Of the three denied applications, two were rejected because they involved personal loans outside the scope of a licensee’s business and therefore outside the rules of the fund. The third was denied because the applicant had already recovered their investment from the scheme and had suffered no financial loss, according to information on RECA’s website.

RECA said some applicants also sought compensation for projected profits, lending fees and other inducements Drinkwater had offered. Those are not considered eligible financial losses under the fund and will not be compensated. The regulator said it applies fund rules consistently to every application regardless of the circumstances of individual cases.

The post Alberta real estate regulator announces $1.4M payout to victims of Drinkwater Ponzi scheme appeared first on REM.