At least 16 victims allegedly misled by high-interest real estate loan scam
A former Calgary real estate agent is facing serious fraud charges after allegedly scamming 16 investors out of nearly $2 million through a series of short-term, high-interest “real estate investments.”
According to a Calgary Police Service news release issued May 8, 2025, the accused, Eric Drinkwater, is alleged to have operated the investment scheme over a four-year period while working with Re/Max Central.
$1.9M Lost in Alleged Real Estate Investment Scam
The investigation began in July 2024, when one investor reported losing $80,000 after not receiving any repayments from what he believed was a real estate investment deal.
Police say Drinkwater promised to repay the investment with interest, but after months of excuses and delays, the victim realized he had been defrauded. This report led to a broader investigation which uncovered at least 16 victims and $1.9 million in total losses between March 2020 and February 2024.
The fraudulent scheme allegedly involved convincing investors to provide short-term, high-interest loans, presented as legitimate real estate investment opportunities.
Charges and Court Details
Eric Drinkwater, 43, has been charged with one count of fraud over $5,000. His court appearance is scheduled for June 11, 2025 in Calgary.
According to the Real Estate Council of Alberta, Drinkwater’s real estate license was suspended on June 18, 2024, shortly after the first complaint was filed.
Real Estate Fraud a Growing Concern
Cases like this highlight the importance of working with licensed professionals and exercising caution when presented with unsecured investment opportunities that promise high returns.
Ontario and other provinces have seen similar scams involving fake pre-construction projects, high-interest private loans, and fraudulent joint ventures. Consumers are advised to:
- Verify the agent’s license status through their provincial real estate regulator
- Avoid informal loan arrangements without legal documentation
- Be wary of “guaranteed” returns, especially in volatile real estate markets
- Seek legal or financial advice before transferring large sums of money
The Real Estate Council of Alberta (RECA) and similar regulatory bodies across Canada encourage investors to report suspicious activity and consult public disciplinary records when choosing an agent or broker.
References:
- Calgary Police Service – May 8, 2025 News Release
- CBC News, David Bell – May 8, 2025
- Real Estate Council of Alberta – License Status Database
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