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26.11.2018 at 21:06
Yet Another Agent Convicted Of Trust Account Fraud
A former real estate agent has been handed a heavy penalty.
Christopher Black was the Director and Licensee-In-Charge of CLB Property Group Pty Ltd, operating as Wiseberry Penrith.
He has been convicted of trust account fraud after pleading guilty to misusing more than $124,000 that was supposed to be held in trust after the sale of 2 properties.
He also pleaded guilty to failing to keep the deposits for the 2 properties, which came to more than $158,000, in a trust account.
Matt Kean, NSW's Minister for Better Regulation, said Mr Black misused the money for personal use.
"One of the families Black dealt with purchased their home for more than $1 million, of which more than $100,000 was placed into a trust account.
"CLB Property Group Pty Ltd used the deposit for reasons completely unrelated to the sale of the house, leaving the trust account short of funds when the sale was settled."
On another occasion, the company accepted a home deposit of $55,000, which was supposed to be held in trust until settlement.
"Black transferred more than $40,000 out of that trust account, again, leaving insufficient funds to pay to the vendor at settlement.
"Black had no authority to withdraw money out of the company trust account."
Ken said it was yet another example of a bad apple in the real estate industry doing the wrong thing, and further highlighted the risks of self-regulation.
"This matter highlights the critical role Fair Trading plays in monitoring and enforcing real estate laws."
This comes just as the
Real Estate Institute of NSW
(REINSW) has been heavily criticising the Office of Fair Trading and calling for a Parliamentary Inquiry into OFT's decision-making process.
Mr Black was sentenced to 18 months imprisonment, to be served in the community by intensive correction order.
He was also ordered to complete 400 hours of community service, and undergo mental health treatment.
Wiseberry Penrith has been under new management since March 2017.
Photo: Better Regulation Minister Matt Kean
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