Epic Alliance under investigation by Sask. securities watchdog over investment scheme

The Financial Consumer Affairs Authority of Saskatchewan (FCAA) is investigating the Epic Alliance group of companies in Saskatoon, said the executive director of the authority's securities division.

The Epic group was hit with a temporary cease trade order in October 2021 that was lifted the following month.

"We're still investigating," Dean Murrison said in an interview.

"The next step would be a statement of allegations, and that would be public and available for everybody to see. And then of course, if they did that, it would go to a hearing and that hearing would be public as well."

The FCAA investigation comes as affordable housing advocates in the city are wrestling with the possible ramifications of the company's collapse.

The Epic group amassed a portfolio of more than 400 homes in the city's core neighbourhoods since its creation eight years ago. It managed the homes for mostly out-of-province investors who wanted to become involved in real estate but did not want the day-to-day responsibilities of a landlord.

Former employees told CBC that, when the company abruptly shut down in January, more than half of the 400 homes were either in dire need of repair or unoccupied.

This frustrates Toby Esterby.

Esterby heads the board of the Saskatoon Housing Initiatives Partnership. A long-time affordable housing advocate, he said it's hard knowing there is a pool of unoccupied homes in the city's core.

"It is problematic to see that volume of houses that could potentially be more affordable rentals for families that desperately need those more affordable rentals," he said.

"The fact that some, or half, or most of them may be sitting empty is really a sad state of affairs when we have many, many, many people that do not have a roof over their head right now."

Hilary Gough is similarly frustrated. She is the councillor for Ward 2, where the majority of the rental homes are located.

"It's clearly a really big challenge," she said of dealing with the properties.

"But I also see a real opportunity here in terms of the trajectory of these properties and co-ordinating efforts to see them serve the needs of community. And when I say that, I'm talking about availability of quality, affordable housing for folks."