Fair Trading Minister, Virginia Judge, today announced that an unlicensed real estate agent has been jailed for 18 months and ordered to pay $123,830 compensation.

The Sydney District Court upheld a magistrate’s sentence last February that found Phillip Chau misappropriated monies from clients’ property trust accounts.

Mr Chau was involved in the management of St George Property Pty Ltd (trading as Raine & Horne Kogarah), and was found guilty of breaching section 178A of the Crimes Act 1900.

Ms Judge said the court imposed a non parole period of 12 months.

“This is one of Fair Trading’s best outcomes,” Ms Judge said.

“The decision sends a powerful message that Fair Trading will pursue anyone conducting business in a fraudulent manner and ensure they are prosecuted to the full extent of the law.

“Consumers expect their dealings with businesses to be conducted in an ethical and professional manner and we will work tirelessly to protect their interests.

“Over two months Mr Chau treated the real estate agency’s clients’ trust accounts as his own personal bank account, making 18 withdrawals for his personal and business use.”

Ms Judge said Mr Chau’s real estate agent’s licence was cancelled in 1993 following his conviction for being an unregistered salesperson.

At the time, Mr Chau was the licensee-in-charge and director of another real estate business.

“Mr Chau is an unlicensed person who helped himself to his clients’ money for his own personal gain,” Ms Judge said.

“His conduct was illegal, unethical and unacceptable.”

Financial trust accounts operated by agents have strict rules to ensure consumers’ money is handled appropriately.

Ms Judge said the Property, Stock and Business Agents Act 2002 requires anyone wishing to carry on the business of a real estate agent to hold a licence.

She said the system is there so consumers can be confident they’re dealing with qualified agents who have the proper business principles to carry out the work.

Check the validity of a real estate agent’s licence online or call 13 32 20.

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