Real estate agent took home client’s cash

A former real estate agent who dipped into homebuyers’ deposits to prop up his struggling business has been jailed.

Justin Scavo, 40, returned before the County Court of Victoria on Monday after pleading guilty to 12 offences under the Estate Agents Act.

Handing down his sentence, Judge Gerard Mullaly said the former sole director of Revolve Real Estate began to withdraw money from trust accounts of four homebuyers in April 2018 after running into “cash flow problems”.

Over a 16-month period Scavo transferred about $96,000 to his own bank accounts, using the funds to pay for business expenses, gambling and sending money to family overseas.

“These crimes repeated over a period of time could not be said to be impulsive heat of the moment-type decisions,” Judge Mullaly said.

“They are purposeful decisions to move money that should have remained where it was.”

The judge said Scavo, who began working as a real estate agent shortly after finishing year 12, knew his actions were “wrong and illegal”.

After running into complications during settlement, each of the homebuyers lodged complaints with Consumer Affairs Victoria who brought the legal action.

The court was told each buyer was able to proceed with settlement after receiving compensation from the Victorian Property Fund — who Scavo was ordered to reimburse $101,601.

His lawyers had argued Scavo should not be jailed, but Judge Mullaly found this would have been too lenient for the “significant breach of trust”.

“Your breach of trust diminishes the confidence that purchasers or the community generally, have in real estate agents as the holders of deposits,” he said.

He was jailed for four months and will complete a two-year community corrections order with 180 hour of unpaid work when released.

Scavo, the court was told, has his licence cancelled and business shuttered, and will not work in real estate again.

Consumer Affairs Victoria Director Nicole Rich said the outcome sent 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,” she said.

“We will continue to pursue agents and agencies who put their clients’ money at risk and hold them accountable.”