05/08/2025
Successful Judgment Against Fraudster Culminates in Criminal Charge Laid
On May 8, 2025, the Calgary Police Service announced that they formally charged Eric Drinkwater with one count of fraud over $5,000. The charge comes on the heels of the March 3, 2025 landmark judgment in the case of Piteau et al. v. Drinkwater et al., marking a significant victory for victims of some of the fraudulent real estate investment scheme.
The plaintiffs, represented by Loberg Ector LLP, were awarded millions in damages, full indemnity costs, along with additional punitive damages which were initially set at $1,000,000 but which remain under judicial consideration as to the final amount. In the same matter, in April the Alberta Court of King's Bench also affirmed the award of the extraordinary remedies of a Mareva injunction and an attachment order against the charged fraudster and his related company.
The case centered around Mr. Drinkwater, a former Calgary real estate agent and associate broker at Re/Max Central. Drinkwater orchestrated a Ponzi scheme involving falsified bridge loans for non-existent transactions, convincing investors to provide funds under the pretense of financing legitimate real estate deals. The documents supporting these transactions were forgeries, and no actual deals existed. Evidence presented in court revealed that at least 71 investors were defrauded, with the number potentially exceeding 100.
In the proceedings Blair Ector, a founding partner of Loberg Ector LLP, emphasized the importance of the punitive damages in sending a clear message against such fraudulent activities in Alberta. The firm had initially secured an attachment and preservation order against Drinkwater's assets, ensuring the protection of the plaintiffs' interests to the extent possible in the circumstances, which has since been affirmed in King's Bench.
The Real Estate Council of Alberta (RECA) was named as a statutory defendant solely in its capacity as the administrator of the Real Estate Assurance Fund, which is designed to protect the public from fraudulent industry professionals. Given the likelihood that Drinkwater cannot satisfy the judgment, the Assurance Fund is expected to intervene to compensate the victims.
The legal action continues against Pat Edward Hare, the owner of the brokerage where Drinkwater worked. Hare has defended the claim. Further claims are anticipated concerning parties who facilitated or failed to detect and prevent the fraudulent scheme earlier.
This case underscores the critical role of legal diligence and the mechanisms in place to protect investors from fraudulent practices in the real estate industry.
Loberg Ector LLP is a law firm practicing complex commercial litigation in Calgary, Alberta.
🔵 CHARGE LAID 🔵
We have charged a man who is believed to be responsible for defrauding several people who each invested thousands of dollars in various real estate opportunities under the direction of a realtor.
📍 In July 2024, a victim contacted police to report he believed he was scammed after he invested approx. $80,000 over the span of a year with a realtor & had not received any type of repayment despite the financial agreement.
Initially, the realtor proposed a real estate investment deal with the intention of repaying the victim his initial investment, plus interest. After several attempts to communicate with the realtor about a repayment timeline, the victim was provided several excuses & realized he lost money.
Police were contacted & launched an investigation. It was discovered there were several additional victims who were also promised similar investment opportunities & were never repaid.
Between March 2020 & February 2024, while employed with Re/Max Central, the realtor is believed to have solicited numerous loans disguised as investment opportunities by offering short-term, high-interest transactions, leveraging his professional capacity as a real estate agent.
It is believed he told victims he knew of clients who needed funding to close deals on real estate transactions to avoid impacting their credit or borrowing capacity. The realtor explained he would repay the loans in a short timeframe, with profits made from the sale of his client’s homes.
He also guaranteed the transactions, ensuring the victims believed the loans were backed by garnishment of his commission from Re/Max Central should he fail to repay the loans.
It was later determined the investments were fictitious & the supporting documents the realtor provided the victims were falsified. So far, 16 victims have come forward to police with a combined loss of more than $1.9 million.
📌 As a result, we have charged Eric DRINKWATER, 43, of Calgary, with 1 count of fraud over $5,000.
📣 Anyone with information about these, or similar incidents, or who believes they are a victim of fraud, is asked to contact police.
Information?
☎️ CPS: 403-266-1234
🛑 Calgary Crime Stoppers
⚖ Case #: CA24291959 | 5268
🌐 https://newsroom.calgary.ca/man-charged-with-fraud-in-multimillion-dollar-real-estate-investment-scam/