Regulators sound alarm on brokerage

Ontario’s real estate regulator has frozen the bank accounts of local boutique brokerage Graydon Hill Realty Ltd. after finding irregularities.

The Real Estate Council of Ontario said late Friday that chief executive officer Tom Wright had issued the freeze order to protect consumers following an inspection that uncovered the irregularities in the accounts.

However the council would not disclose further details about what prompted the inspection or identify the irregularities.

David Allen, the owner and president of Graydon Hill, has not returned numerous calls to the Star since Thursday when speculation surfaced about possible problems at the firm.

The firm, whose office is in the wealthy Forest Hill and Moore Park areas of central Toronto, opened more than a decade ago. It employs about 30 people.

Graydon Hill did not post any information on Friday about any disruption in operations. There was also no indication of anything amiss on the website of the firm, whose mission statement is “to create the highest level of real estate service ever seen.”

The council said in a statement that the order stops the withdrawal of funds from the brokerage’s accounts so the regulator can protect consumers and other stakeholders.

The council said buyers and sellers who have concerns about any pending transactions or the impact of the freeze order can contact the council for assistance. Council spokesperson Sherri Haigh added they can speak to the regulator’s legal counsel or may want to seek their own lawyer.