Melbourne agency director sentenced after trading unlicensed and mishandling $300k

Reuben, the sole director of Mark Reuben Property, appeared at the Melbourne Magistrate’s Court on Monday, where he was fined $3,000 without conviction, while his company was convicted and fined $6,000.

According to Consumer Affairs Victoria (CAV), Reuben told the court he was unaware that he had to renew his licence annually, and had done so after the watchdog informed him it had been cancelled.

While unlicensed, Reuben entered into exclusive sales agreements with multiple properties in Melbourne CBD, located on Lonsdale St, William St, A’Beckett St, and Spencer St.

Additionally, Reuben pleaded guilty to failing to arrange annual audits, which show when trust funds are being mishandled, for two years between 2021 and 2024.

Reuben admitted that his company made deposits of $305,500 into a National Australia Bank (NAB) everyday account, rather than a trust fund, despite trust funds being required to be kept in a separate account.

According to the Herald Sun, Reuben’s lawyer, Melissa Mahady, told the court her client’s actions were not a deliberate act of dishonesty, as he had mistakenly believed the NAB account was a trust fund.

Magistrate Michelle Hodgson said Reuben’s actions eroded public confidence in the industry and its consumer protections, and an adequate sentence was necessary to ensure legal protections were upheld.

According to CAV director, Nicole Rich, the outcome of the incident sent a clear message to the industry and estate agents.

“We’ll continue to protect consumers from unlicensed operators and agents who fail their key responsibility to manage trust funds appropriately,” she concluded.