The owner of a Richmond real estate brokerage under investigation by the Real Estate Board and Council of B.C. is voluntarily stepping aside.
In a release, the company says Ze Yu Wu will have no role in the operations of the company until probes by the regulatory bodies are complete.
The company says operations are now being handled by managing brokers appointed by the Real Estate Council.
The company is also announcing new voluntary compliance measures, including an independent Cheif Compliance Officer who will oversee the brokerage’s operations and report to regulators.
New Coast says it and its agents “specifically deny recent allegations of wrongdoing detailed in some media reports,” and that it supports the interim report issued by the Independent Advisory Group probing allegations of shady realty dealings and so-called “shadow-flipping.”
New Coast came under the microscope after a Globe and Mail investigation unearthed an audio recording of Ze Ye Wu allegedly training employees in high-pressure sales tactics.
On the tape, a person identified as Wu can be heard telling agents to push for fast sales at low prices to other agents within the company with the goal of flipping properties for big profits and bonuses.
The Real Estate Council has since imposed seven conditions on the firm, including turning over any records linked to commission bonuses or shadow-flipping, and the appointment of a new managing broker approved by the Council.
The opposition NDP have called for a separate, criminal investigation.
Read: New Coast’s submission to the Real Estate Council of BC to allegations of wrongdoing