- Mt Lawley property manager illegally accessed agency trust account seven times
- Redirected money into own bank account to spend on dining and leisure
- Payments to former tenants, a carpentry business and insurer were targeted
A former property manager who illegally diverted money intended for tenants, a carpentry business and an insurance company into her own company's bank account has been penalised $10,577.34 by the Perth Magistrates Court.
Gina Michelle Church received a criminal conviction and was fined $5,000 after pleading guilty to breaching the Real Estate and Business Agents Act when she unlawfully withdrew funds from the trust account of her previous employing agency seven times between February 2021 and March 2022. She was also ordered to pay $4,550.67 in compensation and $1,026.67 in costs.
The Court heard that Ms Church inserted her own company’s bank account details into transactions from the trust account that were supposed to pay for rent refunds, pest removal, carpentry work and an insurance excess. According to bank statements, the money had mainly been spent on ‘leisure’ and ‘eating out’.
Three of the charges related to:
- A $318.25 rent overpayment on a Maylands property intended for a former tenant’s mother;
- A $660 refund on a Riverdale property intended for the former tenants; and
- A $350 payment intended to reimburse a Mount Lawley tenant for bee removal costs
Additionally, Ms Church targeted payments related to the removal and rebuild of a storm-damaged pergola at one of her employing agency’s managed properties. These included a $500 insurance excess intended for the building’s insurer and a $2,581.86 payment to the carpentry business that completed the work.
Payments for home maintenance work undertaken by the same carpentry business at a Yokine property were also targeted, resulting in a $365.89 transfer to Ms Church’s company’s bank account.
Some of the money owed to the carpentry business was eventually repaid by Ms Church’s company, but only after she created a false transaction of $1,174.34 to withdraw further funds from the agency trust account.
In sentencing, Magistrate Wisbey described Ms Church’s deliberate, repeated actions as ‘serious misconduct’ and a breach of trust, requiring specific and general deterrence.
Commissioner for Consumer Protection Trish Blake said the misuse of agency trust funds was one of the most serious offences under the Act.
“As a licensed sales representative, Ms Church would have known about her obligations to protect trust funds. However, she repeatedly misused this money and attempted to conceal her actions by doctoring payment details,” Ms Blake said.
“It’s a profound betrayal on multiple levels – to the clients, who entrust agencies to look after their money, and to the community, which expects the industry to do the right thing.
“This type of offending erodes public confidence in the real estate industry and brings the whole profession into disrepute.
“Tenants and property owners have the right to expect their money will be handled in the correct way and we will continue taking action to protect these interests.”
Further information on the obligations of the real estate industry can be found on the Consumer Protection website. Enquiries can be made via email at consumer@dmirs.wa.gov.au or calling 1300 30 40 54.
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Media Contact: cpmedia@demirs.wa.gov.au