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A property management business and its directors have copped a five-year ban for mismanaging bond monies.
Former agency Burke Property Management and its two directors have been ordered to stop operating for five years after contravening estate agent and renting laws, according to Consumer Affairs Victoria.
The company’s sole business was managing a block of units in Collingwood, which was predominantly used for student accommodation.
After receiving a complaint, Consumer Affairs Victoria found that the company director and agent’s representative, Geoffrey Ogge, was accepting bond money into his personal bank account before sending it on to the Residential Tenancies Bond Authority (RTBA).
Mr Ogge was also accepting bond returns into his private bank account before transferring them to tenants.
Fellow director Michael Meehan acknowledged that he had contravened the Estate Agents Act 1980 by not adequately supervising the company’s business.
Mr Meehan and Mr Ogge also acknowledged they had knowingly provided false and misleading information to the RTBA by lodging bond claim forms that stated the landlord/agent was to receive no part of the bond when, in fact, the agent received the entire amount.
As a result of Consumer Affairs Victoria’s enforceable undertaking, Mr Meehan and Burke Property Management agreed not to reapply for a Victorian estate agent’s licence for five years.
Furthermore, Burke Property Management, Mr Meehan and Mr Ogge agreed not to carry on or be involved in the business of an estate agent for five years, and may face court action if they breach any terms of the undertaking.
[Related: 6 ways to avoid being framed for trust fraud]
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