Sydney agent avoids jail after stealing $530k in clients’ deposits

Huijuan “Jenny” Zhou was sentenced in the Parramatta Local Court on 17 June after pleading guilty to three offences under the Property and Stock Agents Act 2022.

It followed an NSW Fair Trading investigation finding Zhou obtained $539,000 from the company’s trust account between 2 October and 19 December 2023.

Zhou, CEO of Chatswood’s EW Property Group, was found to have repeatedly used housing deposits held in the business trust account for her own benefit, including repayments for loans on her home and purchasing an office.

In one instance, Zhou misused a $190,000 house deposit paid to the agency, and when the property was later sold to another buyer, she failed to respond to the original purchaser.

The funds were only repaid after the consumer engaged lawyers and lodged a complaint with NSW Fair Trading.

Despite all affected consumers eventually being reimbursed, in one case, Zhou took 15 months to return the full $123,000.

As part of her 10-month corrections order, Zhou will also be required to complete 100 hours of community service.

Further, Zhou’s conviction will be listed on NSW Fair Trading’s Name and Shame Register, which aims to instil accountability and transparency across the real estate sector.

Acting NSW Fair Trading commissioner Andrew Floro said misuse of client funds by a real estate agent was a serious breach of trust, particularly when it concerned home buyers’ funds.

He said the prosecution showed the watchdog will not tolerate real estate agents who act dishonestly.

“Trust accounts exist to protect consumers, not to be treated as a personal line of credit. Agents who misuse client funds are breaking the law and will face enforcement action,” Floro said.

“Anyone who breaches the rules will face consequences, demonstrating the NSW government’s commitment to protecting consumers.”