An estate agent has been warned he could soon be jailed after he withdrew money from deposits from potential homebuyers when he ran into financial difficulties.
Are you in a tough spot with the law? Or have you suddenly found yourself on the other side of the thin blue line? Whether you are guilty or not, here’s what to expect when you face criminal proceedings.
Justin Scavo, 40, returned to Victoria County Court on Monday for a hearing after pleading guilty to 11 counts of causing a deficit in a trust account and one count of diverting funds for his own use.
The court heard that Scavo, who ran Melbourne property company Revolve, failed to properly handle $185,000 in deposits from four homebuyers between April 2018 and August 2019.
Bank records showed that he failed to deposit the money into trust accounts as required, and instead put it into his personal accounts.
Former real estate agent Justin Scavo has pleaded guilty to stealing money from potential home buyers in Melbourne. Photo: NewsWire/Liam Beatty
Over the 16-month period, he used about $96,000, mostly for business expenses, but he sent $4,000 to his family abroad and used another $1,000 to bet online.
Each homebuyer subsequently filed complaints with the Victorian Consumer Affairs Authority and was able to settle their property purchases after a long and stressful process.
In court, Scavo’s lawyer acknowledged that what happened was a “significant” breach of trust, but said his client should be sentenced to a community corrections order, noting that he would never work in real estate again.
He said Scavo had been in the business since leaving school and was “very proud of his work” but had hit a rough patch after being contracted by a developer to sell 300 properties in an off-plan development.
Scavo worked in real estate after leaving school, and opened his own agency in 2015. Photo: Supplied.
He said the contract details meant Scavo would not receive a commission until the properties were built, and that he had “neglected” other sales, leading to a difficult period.
“This is due to a clear lack of business acumen,” the lawyer explained.
“He wanted to impress the developer… but he found himself in this context where he had to sell other homes on the side.”
The court heard that Scavo began using methamphetamine to deal with stress and depression he was suffering from.
Judge Gerard Mullaly adjourned sentencing until August 5, saying he needed time to consider the case.
