New Coast Realty rebuts allegations as owner steps aside for investigation

The owner of New Coast Realty,Ze Yu Wu, has voluntarily stepped aside while real estate board officials conduct an investigation into allegations of wrongdoing at the company.

During the investigation operations of the company offices are being overseen by managing brokers approved by the Real Estate Council of British Columbia.

The company, with offices across Metro Vancouver, is disputing the claims.

An investigation was launched by the Real Estate Council of B.C. after the Globe and Mail newspaper published allegations Wu had told his agents to pressure homeowners into selling their listings at low prices to clients of other New Coast agents.

Those buyers could then assign the newly purchased home contracts for a profit.

The alleged practice dubbed "'shadow flipping" triggered an investigation into the company and raised concerns about the effectiveness of having the real estate industry regulate itself in B.C.

New Coast Realty issued a statement Tuesday through a public relations firm claiming it has followed all of the necessary rules and regulations.

The company also released a five-page rebuttal of the allegations that had been prepared for the Real Estate Council of B.C.

An advisory group set up by the province to look at overhauling the way B.C.'s real estate industry is regulated is expected to issue its final report in June.

New Coast Realty response