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Action has been taken against a former Ravenswood agent by Consumer Affairs Victoria (CAV) under the Estate Agents Act 1980.
Shane Hooley faces a potential real estate industry ban after CAV alleged that he falsified client account records and transferred more than $17,000 in trust account funds to his personal bank account between February and July 2019.
Upon identifying the incident, his employer conducted an internal investigation with the trust account funds restored using the agency’s company operating account, with Consumer Affairs then contacted.
CAV has begun disciplinary proceedings against Mr Hooley in the Victorian Civil and Administrative Tribunal (VCAT), with potential outcomes including a ban and penalties ranging up to $5,000.
The matter is listed for a compulsory conference at VCAT on 6 June 2023.
Legally, agents must deposit any money received in advance from a client into a trust account, which ensures the protection of client money. Managing trust accounts is a core professional obligation for estate agents.
Nicole Rich, Consumer Affairs director, stated it is paramount that agents take their trust obligations seriously, especially given Consumer Affairs “will continue to focus on ensuring agents manage their trust accounts as a priority”.
“If agents fail to meet their responsibilities, or misuse trust funds, we will take action,” Ms Rich said.
The case is the second of this nature to be reported in 2023 after a West Australian agent was fined over $2,000 for “multiple unauthorised withdrawals from his agency’s trust account”.
Magistrate Harries, who presided over that case, said, “for a licensed real estate agent or their staff to use trust account funds for other purposes is not only illegal, but a betrayal that undermines the integrity of the system and confidence in the industry”.
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