Estate agent Mark Reuben has been fined after pleading guilty to trading without a licence and mishandling more than $300,000 of client funds.
Magistrate Michelle Hodgson noted that Reuben’s actions had eroded public confidence in the industry and its consumer protections.
She said an adequate sentence was necessary to ensure legal protections were prioritised, upheld and respected.
Reuben, of Greendale, is known for selling high-end CBD apartments through his agency, Mark Reuben Property.
Reuben told the court he was unaware that he had to renew his licence annually, and had done so after Consumer Affairs Victoria informed him it had been cancelled.
While unlicensed, Reuben acted as the estate agent in 8 exclusive sales authorities, accepting 12 deposits on behalf of the parties.
Reuben also pleaded guilty to failing to arrange annual audits – which show trust funds are being managed appropriately – for 2 years.
Over a 6-month period, he ran his agency out of a single operating account, including operational and trust fund money. Trust funds must be kept in a separate account.
Reuben was fined $3,000 without conviction, while his company was convicted and fined $6,000.
Consumer Affairs Victoria Director Nicole Rich said the outcome sent a clear message to industry and estate agents.
‘We’ll continue to protect consumers from unlicensed operators, and agents who fail their key responsibility to manage trust funds appropriately.’
For more information about managing trust accounts.