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Former Real Estate Licensee Found to Have Committed Misconduct in Commission Deals Scheme
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Former Real Estate Licensee Found to Have Committed Misconduct in Commission Deals Scheme

BCFSA found Andre Zubko committed professional misconduct and conduct unbecoming when he deceived his clients to receive more commission than he was entitled to.

Vancouver, July 10, 2024 – BC Financial Services Authority has found that Andre Zubko, a former real estate licensee, committed professional misconduct, deceptive dealing, and conduct unbecoming when he worked against the best interests of his clients to obtain higher commission payments than he was entitled to under his listing agreements.

Zubko was licensed from 2006 to 2017 and largely worked in the Squamish, B.C. area. Following a hearing under the Real Estate Services Act (“RESA”), BCFSA found that from 2016 to 2017, Zubko created a scheme involving the help of two other real estate licensees for the purpose of increasing commissions on eight real estate transactions in Squamish and Coquitlam, B.C. Zubko also arranged for personal acquaintances to profit on the purchase and assignment of properties. Zubko took these actions at the expense of his seller clients by:

  • Enlisting the participation of two other real estate licensees to act as notional buyers’ agents, who, at Zubko’s direction, would manipulate his seller clients to agree to pay a higher rate of commission than provided for in the listing agreements. Zubko received a share of these increased commissions from the two licensees, which he did not disclose to his clients; and
  • In two instances, working to coerce his seller clients to reduce the listing price on their properties to benefit Zubko’s close personal acquaintances, who would then purchase the properties and turn profits by assigning the contracts of purchase and sale at higher selling prices.

In addition to findings of deceptive dealing and breaches of duties to clients arising from the scheme, Zubko also committed professional misconduct by making false or misleading statements to BCFSA while being investigated and instructing one of the licensees to do the same.

Findings of conduct unbecoming stem from Zubko’s actions in respect of all eight transactions – actions which are contrary to the public interest and undermine public confidence in the real estate industry.

“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, Compliance and Enforcement at BCFSA. “BCFSA is committed to consumer protection and will seek penalties that reflect the severity of this abhorrent conduct.”

Under RESA, BCFSA can issue discipline penalties up to a maximum of $250,000 per contravention, as well as other measures. A separate hearing will determine discipline penalties against Zubko. The hearing date is pending.

About BCFSA

BC Financial Services Authority is the province’s regulator for the financial services sector that helps to protect British Columbians during some of the most important financial decisions of their lives. As a Crown agency of the Government of British Columbia, BCFSA oversees credit unions, trust companies, insurance companies, pension plans, mortgage services, real estate services, real estate development marketing, and money services businesses. BCFSA also administers the Credit Union Deposit Insurance Corporation of British Columbia (“CUDIC”). BCFSA’s mission is to instill confidence in the financial services sector by focusing on the safety and soundness of regulated entities and consumer protection.