The Real Estate Assurance Fund's largest-ever single payout signals a new chapter for victims of Alberta's most infamous real estate fraud
Alberta's real estate regulator has approved nearly $1.4 million in compensation for victims of the Eric Drinkwater bridge loan fraud — the largest single payout in the Real Estate Assurance Fund's 40-year history.
The figure reflects the extraordinary scale of harm caused by a single licensed agent whose Ponzi scheme defrauded at least 71 people of more than $3.5 million.
The Real Estate Council of Alberta (RECA) confirmed that 15 claimants connected to the loan fraud will receive compensation from the Real Estate Assurance Fund, with each eligible claim capped at $35,000 per transaction under provincial legislation.
Three additional applications were denied as they did not meet eligibility requirements.
RECA also confirmed that claims seeking compensation for projected profits, lending fees, and other inducements Drinkwater offered fall outside the scope of what the fund can cover.
"RECA takes our responsibility to protect consumers very seriously," the regulator said in its announcement.
"The Fund exists to help consumers recover financial losses resulting from a licensee's fraud, breach of trust or failure to manage trust money properly."
The fund, paid into by licensed real estate professionals across Alberta, operates under legislation that sets both the criteria for eligibility and the ceiling on individual payouts.
RECA said it continues to assess remaining applications and is encouraging anyone who believes they may be eligible to apply.
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Drinkwater's rise and fall
Eric Drinkwater, a Calgary realtor of 19 years, admitted to falsifying bridge loans for non-existent real estate transactions, targeting past clients, fellow realtors, and members of the public. The scheme is believed to have run between March 2020 and February 2024.
RECA issued a lifetime ban effective September 22, 2025, following a disciplinary hearing in May where Drinkwater admitted to soliciting fraudulent bridge loans.
The independent hearing panel described his conduct as "among the most severe" RECA has ever addressed, and he was also ordered to pay $9,500 in hearing costs.
The panel found that Drinkwater contravened Real Estate Act Rules 42(b), a provision that prohibits fraud and other forms of criminal dishonesty. The permanent ban is the third issued by an independent hearing panel since 2022.
Criminal proceedings initiated by the Calgary Police Service remain ongoing and are separate from RECA's regulatory process.
Civil lawsuits also continue, and RECA has indicated it will provide documentation and records to law enforcement and courts as required.
The fallout has extended beyond Drinkwater himself.
Subsequent Notices of Hearing were issued in June 2025 for David Lem, the broker, and Pat Hare, the brokerage owner, whose conduct came to light during the Eric Drinkwater investigation.
Court records show that Hare advised Drinkwater against reporting his conduct to RECA — a detail that emerged in Justice Romaine's decision and that industry observers described as deeply troubling.
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Concerns about the regulator's handling of the Drinkwater matter have also prompted internal change at RECA.
In November 2025, RECA named Cynthia Moore as its new board chair, replacing Elan MacDonald, as the organisation came under scrutiny over its response to the scandal.
At the time of the leadership transition, the majority of Drinkwater's victims had not yet received compensation.
Meanwhile, a survey conducted by Pollara Strategic Insights on behalf of Mortgage Professionals Canada and the Mortgage and Title Insurance Industry Association of Canada found that 58% of Canadians remain concerned about mortgage fraud in 2025.
RECA said it is further strengthening its focus on fraud education as part of its response to the case, acknowledging that fraud risks continue to grow in sophistication.
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