Scheme involved manipulating commissions and property sales
A former real estate agent in British Columbia has been found guilty of deceiving clients to boost his own commissions.
The BC Financial Services Authority (BCFSA) conducted an investigation revealing that Andre Zubko manipulated eight real estate transactions to increase his commission payments.
Zubko, who was licensed from 2006 to 2017 and primarily worked in Squamish, BC, devised a scheme between 2016 and 2017 that involved the help of two other real estate licensees. This scheme allowed him to collect higher commission payments than those agreed upon in the listing agreements with his clients.
Additionally, Zubko arranged for his personal acquaintances to profit from property transactions, further compromising his clients' interests.
BCFSA’s investigation revealed several unethical practices by Zubko.
He enlisted two other licensees to act as buyers' agents. These agents, under Zubko’s direction, convinced his seller clients to agree to higher commission rates than originally specified. Zubko then received a portion of these increased commissions, which he did not disclose to his clients.
In two cases, Zubko pressured his seller clients to lower the listing price of their properties. This allowed Zubko’s personal acquaintances to purchase the properties at a reduced price and later resell them at higher prices, making significant profits.
The watchdog also discovered that Zubko attempted to cover his tracks by making false or misleading statements to the BCFSA during their investigation. He even instructed one of the other licensees involved in the scheme to do the same.
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Under the Real Estate Services Act (RESA), BCFSA can impose discipline penalties up to $250,000 per contravention, along with other measures. A separate hearing to determine the specific penalties against Zubko is pending, with the date yet to be announced.
“The licensee’s calculated and self-serving actions to deceive his own clients and reap financial gains at their expense bring the real estate industry into disrepute,” said Jonathan Vandall, vice president of compliance and enforcement at BCFSA. “BCFSA is committed to consumer protection and will seek penalties that reflect the severity of this abhorrent conduct.”
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