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The trust account violations were discovered by an employer who reported the issue to Victoria’s consumer watchdog.
A former Ravenswood agent’s representative has been found to have mismanaged $17,000 in trust account funds and falsified records, leading to a decade-long industry ban and a fine.
Shane Hooley was found to have failed to meet his responsibilities under the Estate Agents Act 1980 following disciplinary proceedings launched by the Director of Consumer Affairs Victoria at the Victorian Civil and Administrative Tribunal (VCAT) on 20 January.
Between February and July 2019, the tribunal heard that Mr Hooley falsified client account records and transferred more than $17,000 in account funds to his bank account for personal use.
Upon identifying the discrepancies in the accounts, Mr Hooley’s employer conducted an internal investigation before ending his employment. The employer then contacted Consumer Affairs Victoria (CAV) to report the findings.
Subsequently, the agency restored the trust account funds by reimbursing the mismanaged client money using the company’s own funds.
Legally, agents must deposit any money received in advance from a client into a trust account, which ensures the protection of client money.
Nicole Rich, Consumer Affairs director, stated it is paramount that agents take their trust obligations seriously, especially given Consumer Affairs “will continue to focus on ensuring agents manage their trust accounts as a priority.”
During the disciplinary proceedings, VCAT found Mr Hooley “did not act fairly, honestly and to the best of his knowledge and ability in performing his agent duties” and “engaged in unprofessional or conduct detrimental to the estate agent industry’s reputation or interests.”
He was also declared to be “not of good character or otherwise not a proper person for employment as an agent’s representative.”
On 30 June, Mr Hooley was officially banned from operating as an agent’s representative until 2033. He must also pay a $2,500 fine to the Victorian Property Fund.
Speaking on the outcomes of the disciplinary proceedings, Ms Rich said it was essential for agents to uphold their trust obligations.
“We will continue to focus on ensuring agents and agent’s representatives manage their trust accounts as a priority. If agents fail to meet their responsibilities, or misuse trust funds, we will act,” she said.
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