Alberta’s real estate regulator will pay more than $1.4 million to victims of a bridge-loan Ponzi scheme run by former Calgary real estate agent Eric Drinkwater. This represents the largest compensation payout in the regulator’s history.
In a May 10 statement, the Real Estate Council of Alberta (RECA) said it approved 15 compensation applications through 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.
The scheme
Drinkwater was permanently banned from trading real estate in Alberta in September after admitting to defrauding 71 people 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 for 19 years, Drinkwater acknowledged targeting past clients, fellow agents and members of the public. He 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. By legislation, compensation is capped at $35,000 per transaction.
RECA’s guidance notes that the fund provides a defined route to compensation where eligibility criteria are met, but does not cover every kind of loss. “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
Decisions on compensation are governed by formal oversight and require applicants to obtain proper court judgments where necessary, RECA said. All Drinkwater-related applications were reviewed and approved by RECA’s board in accordance with the legislation that governs the fund.
RECA continues to assess incoming applications. Total compensation paid will depend on the number of eligible applications and the losses that meet statutory requirements.
Why some claims were denied
Of the three denied applications, two were rejected because they involved personal loans that were outside the scope of a licensee’s business and therefore not covered by the fund. The third application was denied because the applicant had already recovered their investment and had not suffered a financial loss.
RECA also noted that some applicants sought compensation for projected profits, lending fees and other inducements Drinkwater had offered. Those items are not eligible financial losses under the fund and are not compensable. The regulator said it applies the fund’s rules consistently to every application, regardless of individual circumstances.