A Perth principal’s failure to prevent a massive $715,000 breach of his agency’s trust account has resulted in his permanent ban and licence cancellation.
A Como agent has been permanently banned and had his licence cancelled after failing to prevent the misappropriation of $715,000 from his agency by an employee and company director.
David McManus was formerly the sole director of Asset Growth Pty Ltd, trading as Elite Property Group, before it went into voluntary administration in November 2023 and was liquidated in March 2024.
Following liquidation, a special audit and forensic investigation were commissioned by Consumer Protection Western Australia at the Department of Local Government, Industry Regulation and Safety.
The probe found that between June 2022 and February 2024, an employee misappropriated $715,423.21 across 45 transactions from the agency’s property management trust account.
The employee redirected the money into bank accounts she controlled before leaving Australia in October 2024.
The State Administrative Tribunal (SAT) found McManus failed to take reasonable steps to ensure staff compliance with trust account requirements, breaching the Real Estate and Business Agents Sales Representatives Code of Conduct 2016.
It found that McManus had failed to oversee the employee’s work, investigate significant discrepancies identified by the statutory auditor, and properly reconcile the trust account each month.
Following the audit findings, the SAT suspended the agency in March 2024, froze its accounts and appointed a supervisor to manage the business, with the trust funds eventually distributed to those lawfully entitled.
Consumers affected by the breach were also assisted in making claims against the fidelity guarantee account, a fund that compensates individuals for losses of trust money from criminal or fraudulent conduct by licensed agents.
On 18 March 2026, McManus was immediately stripped of his real estate agent’s licence and triennial certificate, permanently banning him from holding either in future.
Commissioner for Consumer Protection, Trish Blake, said the case demonstrated the importance of licensed agents having strong oversight.
She said trust account obligations were fundamental to consumer confidence and that, when agents failed to maintain proper controls, the consequences were devastating.
“This decision reinforces that licence holders are ultimately responsible for ensuring their businesses comply with the law,” Blake concluded.
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