Natasha McElwaine, the director of McElwaine Hunter Valley Pty Ltd (McElwaine Estate Agents), was convicted by the Parramatta Local Court of 11 offences under the Property and Stock Agents Act.
The Court fined Ms McElwaine $7,200 and ordered her to serve a 15-month Intensive Corrections Order including 120 hours of community service.
NSW Fair Trading prosecuted Ms McElwaine after its investigation found she fraudulently converted trust money ($940,280) and did not keep trust money in a trust account ($280,597). The sum of the funds subject to prosecution totalled $1,220,877.
In court, Ms McElwaine claimed that her motive was to not make profit, but to keep debts under control. She re-mortgaged her property to repay the trust account.
The monies were repaid to vendors less than a month later and no vendor was left out of pocket.
Ms McElwaine has the right to appeal.
Quotes attributable to Acting NSW Fair Trading Commissioner, Petrina Casey
"This prosecution by NSW Fair Trading serves as a timely reminder to real estate agents who should be aware of trust account fraud will not be tolerated.
"Consumers should inform themselves as much as possible by checking reviews of the business and verifying they have the appropriate licensing and registrations prior to making any decisions or paying large deposits.
"NSW Fair Trading takes a proactive approach to protecting consumer rights and holding real estate and stock agents to account.
"Anyone who has experienced problems with getting what they paid for from traders or contractors is encouraged to contact NSW Fair Trading."
