February 25, 2022
EY has issued its first report in its capacity as inspector of Epic Alliance Inc. and certain related entities (the “EA Group”), a Saskatoon, Saskatchewan-based group of companies that facilitated the buying, selling, renting, subletting, and renovating of residential real estate. EY was appointed on February 25 on application by various investors to investigate what happened to the $211.9 million in investor funds raised by the EA Group. Based on the information currently available (which is unaudited and incomplete), the inspector reported that, among other things, the group frequently experienced cash shortfalls on its Hassle-Free-Landlord Program properties due primarily to low occupancy rates and high repairs and maintenance costs. The company was planning to expand its program into the United States, but these plans appear not to have materialized, with EY reporting that the $3.8 million raised for the expansion appearing to have been used to fund losses in the Canadian corporations. The inspector also confirmed that the EA Group raised $370,000 from four investors in contravention of a cease trade order in 2021. Counsel is MLT Aikins for the inspector.
By Dina Milivojevic