Agent trust money misuse investigation results in second sentence of imprisonment
An executive director of a former Cairns accommodation provider received a sentence of imprisonment, suspended for two years, after being taken to court by the Office of Fair Trading (OFT) for the misuse of trust money.
Janet Karen Guthrie, executive director of Three Sista’s Pty Ltd, a corporate letting agent and previous caretaker of the Plaza Palms Resort in Manunda, pleaded guilty to one charge of fraud under the Criminal Code in the Cairns Magistrates Court (1 March 2022).
The Court heard that in March 2017, Ms Guthrie withdrew $10,000 in cash from Three Sista’s Pty Ltd’s trust account, inappropriately used it for personal and business costs, and failed to keep required records of the transactions. She informed the court that the money had been used to pay the Australian Tax Office for a tax debt.
Ms Guthrie was sentenced to 6 months imprisonment wholly suspended for a period of two years and ordered to repay the $10,000. A conviction was ordered.
The company Three Sista’s Pty Ltd was conjointly charged with Ms Guthrie in relation to the same offence and was also charged with a second count of fraud.
No representative of the company appeared on behalf of Three Sista’s Pty Ltd and the court dealt with that matter ex-parte. The court heard that between October 2016 and June 2017, 36 payments were drawn from the company’s trust account and paid to another real estate agency which was managing the private tenancy of Ms Guthrie.
Three Sista’s Pty Ltd received one penalty for both offences and was convicted and fined $10,000 and was further ordered to repay $22,633. A conviction was recorded.
The same OFT investigation had already led to Ms Guthrie’s ex-husband Stuart James Wright, the principal licensee of Three Sista’s Pty Ltd, pleading guilty to 437 offences connected with the management of Plaza Palms Resort.
Mr Wright received a head sentence of 2 years imprisonment in the Cairns Magistrates Court on 25 October 2020 and was paroled on 25 March 2021 after serving 6 months on his terms of imprisonment.
Fair Trading Commissioner Victoria Thomson said the OFT works towards ensuring resident letting agents are acting lawfully and in the best interests of their clients.
“Trust money does not belong to agents and the OFT will investigate and seek penalties for those, who deal with that money inappropriately,” Ms Thomson said.
“Property owners pay large sums of money to these agents to manage their assets, and tenants trust that they are dealing with their money properly when they pay rent and bonds.
“The OFT is committed to weeding out those who damage the integrity of the property industry in Queensland.”
The Trust accounts guide, produced by OFT, provides agents with information about their trust account obligations.
If you believe an agent has been mishandling trust money you can lodge a complaint with the OFT online from its website or call 13 QGOV (13 74 68).