Real estate agent took home buyers’ cash
Written by admin on July 29, 2024
Lawyers acting for a real estate agent who dipped into four home buyer’s deposits have blamed his “lack of business acumen” as they argue he should not be jailed.
Justin Scavo, 40, returned before the Victorian County Court on Monday for a presentence hearing after pleading guilty to 11 counts of causing a deficiency in a trust account and one count of converting money for his own use.
The court was told Scavo, who ran Revolve Real Estate in Melbourne, failed to properly handle $185,000 from the deposits of four homebuyers from April 2018 to August 2019.
Bank records showed he failed to deposit the funds in trust accounts as required to do, instead placing into his personal accounts.
Over the 16 month period he used about $96,000, mostly for business expenses, but sent $4,000 to family overseas and a further $1,000 was used for online betting.
Each homebuyer later lodged complaints with Consumer Affairs Victoria and were able to settle their property purchases after a prolonged and stressful process.
In court, Scavo’s lawyer conceded it was a “significant” breach of trust, but argued his client should be sentenced to a community corrections order, noting he would never work in real estate again.
He said Scavo had worked in the field since leaving school and “took great pride in the work” but had hit a rough patch after he was engaged by a developer to sell 300 properties in an off-the-plan development.
The details of the contract, he said, meant Scavo would not be paid a commission until after the properties were built, and he “neglected” other sales leading to a rough patch.
“This was due to an obvious lack of business acumen,” the lawyer submitted.
“He wanted to impress the developer … ut found himself in this context where he should have been selling other houses on the side.”
The court was told Scavo began using methamphetamine to cope with his stress and depressive moods.
Judge Gerard Mullaly adjourned sentencing until August 5, saying he needed time to consider the case.
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