Fair Trading Minister Virginia Judge today said a Fairfield man has received a seven months suspended sentence and been ordered to pay the Property Services Compensation Fund $58,855 for misappropriating monies from clients’ trust funds.

Ms Judge said Navid Azzati, the sole Director of Azzati Realty Pty Ltd, formerly t/as Raine & Horne Fairfield, pleaded guilty to three counts of ‘Fraudulent Misappropriation’ breaching section 178A of the Crimes Act 1900.

“Mr Azzati withdrew money from the company’s sales trust account for his personal and business use,” she said.  

“His actions were illegal and unethical and exposed consumers to the possibility of financial loss.”

Licensees are required by law to hold clients’ funds in a trust account kept at an authorised deposit-taking institution in New South Wales.

These rules exist to ensure consumers’ money is handled appropriately.

Azzati Realty Pty Ltd held a company real estate licence between 2006 and 2007.

In 2007, Fair Trading suspended the company’s licence and appointed a manager to investigate the business records of the company.

The prosecution identified three deposits for property sales where Mr Azzati had used the bulk of the money in his business rather than holding it in trust.

Ms Judge said this outcome sends a powerful message that Fair Trading will pursue anyone conducting business in a fraudulent manner to 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 Fair Trading will work tirelessly to protect their interests,” she said.

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