- Permanent ban imposed on agent over failures in trust account oversight
- $715,000 trust account shortfall uncovered in Consumer Protection investigation
- Employee redirected trust funds into her own bank accounts
- Impacted consumers assisted through the fidelity guarantee account
A Perth real estate agent has been permanently disqualified and had his licence cancelled after the State Administrative Tribunal (SAT) found he failed to prevent the misappropriation of more than $715,000 from his agency’s trust accounts by an employee and company director.
On 18 March 2026, David McManus, of Como, was reprimanded and immediately stripped of his real estate agent’s licence and triennial certificate, permanently banning him from holding either in future.
Mr McManus was the director and person in bona fide control of Asset Growth Pty Ltd (trading as Elite Property Group), which went into voluntary administration in November 2023 before being placed into liquidation in March 2024.
A special audit and subsequent forensic investigation, commissioned by Consumer Protection at the Department of Local Government, Industry Regulation and Safety, uncovered that between June 2022 and February 2024, an employee misappropriated $715,423.21 across 45 transactions from the agency’s property management trust account. After redirecting the money into bank accounts she controlled, the employee left Australia in October 2024.
The SAT found Mr McManus breached the Real Estate and Business Agents and Sales Representatives Code of Conduct 2016 by failing to take reasonable steps to ensure staff compliance with trust account requirements. This included failing to oversee the employee’s work, failing to investigate significant discrepancies identified by the statutory auditor, and failing to properly reconcile the trust account each month.
Following the audit findings, the SAT suspended the agency in March 2024, froze its accounts and appointed a supervisor to manage the business. All trust funds were later distributed to those lawfully entitled, and affected consumers were assisted to make claims against the fidelity guarantee account, a fund that compensates individuals for losses of trust money resulting from criminal or fraudulent conduct by licensed agents.
Commissioner for Consumer Protection Trish Blake said the case highlighted the critical importance of strong oversight by licensed agents.
“Trust account obligations are fundamental to consumer confidence in the real estate industry,” Ms Blake said.
“When an agent fails to maintain proper controls, the consequences for consumers can be devastating. This decision reinforces that licence holders are ultimately responsible for ensuring their businesses comply with the law.”
More information about the obligations of real estate agents is available on the Consumer Protection website or enquiries can be made by emailing consumer@lgirs.wa.gov.au or by calling 1300 30 40 54.
Media Contact: cpmedia@lgirs.wa.gov.au