PHOTO: FILE
Faced with a struggling business, a Melbourne real estate agent misappropriated the deposits of four homebuyers. Justin Scavo, 40, returned to the County Court of Victoria on Monday after pleading guilty to 12 offenses under the Estate Agents Act.
Judge Gerard Mullaly sentenced Scavo, the former sole director of Revolve Real Estate, after he admitted to withdrawing money from trust accounts of four homebuyers starting in April 2018 due to “cash flow problems.” Over 16 months, Scavo transferred approximately $96,000 to his personal bank accounts, using the funds for business expenses, gambling, and sending money to family overseas.
Justin Scavo (left) was jailed for four months. Picture: NewsWire/ Liam Beatty
“These crimes, repeated over time, cannot be described as impulsive, heat-of-the-moment decisions,” Judge Mullaly stated. “They are purposeful decisions to move money that should have remained where it was.”
Scavo, who began his real estate career shortly after finishing high school, was aware his actions were “wrong and illegal.” Each of the affected homebuyers lodged complaints with Consumer Affairs Victoria after encountering settlement issues, prompting legal action.
The court heard that each buyer was able to proceed with their settlements after receiving compensation from the Victorian Property Fund, which Scavo was ordered to reimburse $101,601. Despite his lawyers arguing against imprisonment, Judge Mullaly deemed a jail sentence necessary for the “significant breach of trust.”
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“Your breach of trust diminishes the confidence that purchasers and the community generally have in real estate agents as the holders of deposits,” the judge said.
Scavo was sentenced to four months in jail and will complete a two-year community corrections order with 180 hours of unpaid work upon release. His real estate license has been canceled, his business shuttered, and he is barred from working in the industry again.
Consumer Affairs Victoria Director Nicole Rich emphasized that the outcome sends a strong message to the industry and consumers: “This outcome serves as a timely reminder that trust fund misuse will not be tolerated, and there are serious penalties for agents who break the law. We will continue to pursue agents and agencies who put their clients’ money at risk and hold them accountable.”
SOURCE: NEWS.COM.AU