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The agency at the centre of an alleged multimillion dollar property fraud in Western Australia has been restrained from operating.
Consumer Protection has been granted supervision orders by the State Administrative Tribunal (SAT) to take control of York-based Colin King Real Estate, after its sole director's licence renewal application was refused.
Late last year, Colin King and his sons, Paul and Michael, were charged with fraudulently obtaining $6.3 million over the $17 million sale of six rural properties between 2008 and 2011.
The men were accused of buying the properties on behalf of international vendors but misrepresenting the price offered and funnelling the excess profits through shelf companies.
The supervisor's duties include carrying on the activities of the agent for the purpose of winding up the agency.
The Commissioner for Consumer Protection commenced the application after the Department rejected Mr King's licence renewal application on the grounds that "he was not a fit and proper person to hold a licence".
Commissioner for Consumer Protection Anne Driscoll said it was a requirement for a corporate real estate agent to have at least one director who also holds a licence.
"This requirement is essential in protecting consumers because it ensures the actions of a corporate agent are properly supervised by a licensed individual,” Ms Driscoll said.
The news comes after Real Estate Business revealed earlier this month that two real estate agencies in WA were in the process of being wound up after an investigation uncovered the misuse of trust accounts.
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