LJ Hooker Springvale Fraud Agent Jailed

Former Melbourne real estate agent behind bars over $6m 'Ponzi scheme'

I remeber reading about this, apparently they had multiple properties, and the wife was also involved,

there was suspicion she had siphoned all the money overseas,

Originally there was no reference to drug habits, so thats put a new spin on things,

me thinks that maybe he took all the blame while the wife got off scott free as part of their big plan

very sad, still dont understand how this could go on for so long, If vendors are not getting their full funds immediately, all would have come to light pretty quickly

but Im not a ponzi scheme expert

 

What do you mean? You invest in property don't you?

 

oh, ponzi scheme,

I thought I was the rich landlord with cash coming out of my pockets and thats why tenants felt they didnt need to pay rent

better add ponzi scheme co-ordinator to my title

 

@TMNT

You might find this thread interesting, it's the real thing:

Managed Account Question - Courtenay House Trading Group

The posts start to heat up around Apr 2017.

 

Ngo, convicted in 2001 of armed robbery and attempted armed robbery, as well as heroin trafficking before that, must serve a minimum term of three years before being eligible for parole.

Sounds like a great character.

 

Probably the most interesting thread in the 'Property Investment - Other' section by far!

 

He was only in charge of millions and not billions, so all good.

 

Former real estate agent Judy Nguyen pleads guilty to misappropriating client deposits

Still a mess

 

I feel for their kids if both mum and dad end up in jail, but I hope our courts provide a sentence that acts as an appropriate deterrent to potential future acts like these.

 

Feel more sorry for the kids of the people they defrauded. Around 110 victims in total. Odds are that more than a few lost their life's savings over this.

 

Yeah of course I feel for them, they did nothing wrong. Also, I am not against the mum being sent to jail but having personally faced the scenario of losing both my parents as a teenager (one died, one lived) it's a pretty ****ed up situation for a kid who also is not responsible for what has occurred.

 

Sorry for your situation,
But i don't think of the "think of the children" excuse

Their crimes are bad enough, they shouldn't get off just because kids are involved. And that's ignoring all the kids that have been affected by their parents losing a crapload of money


Thats why our legal system is soft

 

This is why I NEVER put a large sum of money into an agents trust account. Many years ago I paid a sizable deposit into a RE trust account, the building inspection revealed that load bearing walls had been removed from the house and other structural issues. Had to get a lawyer involved, the agent made all types of excuses why they wouldn't return he deposit. Long story, crimes were uncovered. I have bought properties on a low deposit of $1K , not putting large amounts into a RE trust account.

 

@TMNT I think we are in agreement. This is one of those terrible situations where some really deplorable, greedy actions hurt so many people so grievously. Really sad for all of the victims.

@Cate Bell it's been a while since I last bought a property. From memory I thought 5-10% was a standard deposit when purchasing. Did you come to an agreement with the vendor in a private sale setting when depositing 1k? I had never considered negotiating that at say an auction.

 

I have found that the vendors don't care, they aren't going to see the $ until settlement anyway. The RE agents do try and push for a larger deposit, but I just tell them straight up that I have had a problem with a RE agent trust fund previously, tell them the story, and then no problems. Either they take the low deposit or there isn't a sale. I don't buy at auctions.

 

Legally speaking I believe the maximum deposit that can be accepted in Victoria is 10% of the purchase price. Anything below that is negotiable.

The sales agent is motivated to get at least 5% because that at least covers their payment. If the sale is unconditional they're entitled to be paid and 5% in the trust account means they'll get it regardless of what happens.

The vendor wants a 10% deposit because it means they get something if the sale falls through after going unconditional. It's going to be very difficult for them to get any money out of the purchaser if the money is still in the purchaser's bank account on the day of a failed settlement.

The purchaser probably doesn't want to give over any money as a deposit. Trust account breaches are incredibly rare, but as a purchaser I'd feel the money would be better off collecting interest in the my account than anywhere else.

Every party has their interests.

Were I a vendor and the purchaser was refusing a 10% deposit on the grounds of not liking an agents trust account, I'd simply counter by accepting a deposit bond. Assuming everyone is acting in good faith, this protects everyone's interests.

 

The alternative is using the solicitor's trust fund as deposit holder.

 

ive pretty much accepted $1k deposits on all my sales when asked, because every sale ive had, I havent had 15 offers, so beggars cant be choosers, I havent had a sale fall over because of this yet, maybe ive been lucky

 

Never use money that’s not yours unless authorised under a license like AFSL. The number of accountants, lawyers, agents who use client money from trust accounts to pay for their own expenses continually astounds me.

 

Dodgy real estate agent’s $800k rip-off

$1500 fine ... is that all?