CALGARY, AB, March 4, 2025 /CNW/ - On March 3, 2025, Loberg Ector LLP obtained a significant judgment for their plaintiff clients against the defendant Eric Drinkwater in Jesse Piteau, Marco Scheiwiller, Kevin Walker and James Bannister. v. Eric Drinkwater, 2172623 Alberta Ltd., Pat Edward Hare and Real Estate Council of Alberta, a lawsuit seeking recovery in a major Ponzi scheme conducted by Drinkwater, a former Calgary real estate agent and associate broker at Re/Max Central (the "Brokerage"), in relation to falsified bridge loans for non-existent transactions Drinkwater claimed were being conducted at the Brokerage. No such transactions existed, and the documents used by Drinkwater in support of the scheme were forgeries.

The firm's clients won judgment before Judge J.L. Mason for the full amount of their claims, being $2,278,114.19 for funds advanced under the fraudulent pretext, $185,124.90 in accrued interest, costs on a solicitor and own client full-indemnity basis, and an award of punitive damages of $1.0 million. 

This significant award of punitive damages puts it in the top ranks of punitive damage awards in Canada. The award was granted upon the request of Mr. Blair Ector to the Court that, "A message be sent that Ponzi schemes will not be tolerated in Alberta". The evidence adduced by the plaintiffs included an acknowledgement by Drinkwater to the Real Estate Council of Alberta that the number of "investor" victims numbered at least 71, and may have exceeded 100.

The Court also granted a declaration that Drinkwater acted fraudulently in the Ponzi scheme, the declaration being a significant barrier to Drinkwater trying to extinguish the debt through bankruptcy. 

The plaintiffs had previously obtained an attachment order and preservation order against the assets of Drinkwater and 2172623 Alberta Ltd. from Justice E. C. Romaine on November 28, 2024, which Order remains in force for 60 days past the entry of this judgment. The action continues against Pat Edward Hare, the owner of the Brokerage, who has defended the claim. 

Real Estate Council of Alberta is a statutory defendant, named solely as the administrator of the Real Estate Assurance Fund, a fund which protects the public from unscrupulous industry professionals, including in circumstances involving fraud. The Real Estate Assurance Fund is expected to have to intervene to protect the plaintiffs in the present case, in the likely event that Drinkwater cannot satisfy the judgment.

Further claims are expected in relation to this matter regarding parties who facilitated or prevented the earlier discovery of the fraudulent scheme.

Loberg Ector LLP is a law firm practicing complex commercial litigation in Alberta, Canada, and lead counsel for the plaintiffs is Blair Ector, a Founding Partner at Loberg Ector LLP.

SOURCE Loberg Ector LLP