Alberta's real estate regulator has announced a record payout of more than $1.4 million to victims of a Ponzi scheme orchestrated by former Calgary Realtor Eric Drinkwater. The Real Estate Council of Alberta (RECA) confirmed that total compensation from its Consumer Assurance Fund has reached $1,407,875, the largest sum ever disbursed in the regulator's history.
Drinkwater's fraudulent scheme
Eric Drinkwater, a former Calgary Realtor, has admitted to defrauding dozens of individuals out of over $3.5 million through a real estate Ponzi scheme. He has since been permanently barred from working in Alberta's real estate industry. RECA stated on its website, "Eric Drinkwater's actions caused significant harm to those involved and should never have occurred. We recognize the impact this matter has had on people."
Compensation details
RECA reported that 15 applications have been approved for compensation, covering eligible financial losses up to a cap of $35,000 per transaction. Three applications were denied for not meeting the criteria. Derek Davidson, one of the first complainants, qualified for a $73,000 payout. He had invested $80,000 across four short-term financing deals with Drinkwater that were never repaid.
While Davidson welcomed the compensation, he expressed mixed feelings, citing lengthy payout timelines and concerns about the regulator's effectiveness. "Generally, those people who received compensation are satisfied with this, but not everyone," he said. "I think a lot of people realize something is better than nothing. I don't think anyone expected to get all of our money back, but at least the system, after a long time, has moved in the direction toward at least helping out some of the victims."
Victim frustrations
Davidson noted that many victims who were clearly defrauded were turned down or received far less than they lost. He also expressed frustration that others he alleges supported Drinkwater's scheme have not been investigated by police. In May 2025, Calgary police charged Drinkwater with fraud, alleging he swindled 16 people out of $1.9 million through bogus real estate investment proposals. A two-week trial is scheduled to begin in February 2027.
Drinkwater has told Postmedia that the true scale of the fraud was much larger, with dozens more victims and losses nearly double what police outlined. RECA has faced criticism from victims and industry leaders over its handling of the case, raising questions about the watchdog's ability to protect consumers.
