- Joondanna sales rep banned for manipulating trust accounts over three years
- 42 unlawful payments totalling $270,000 made between 2021 and 2024
- Paid rent to owners despite tenant income not being received
A Joondanna sales representative has agreed to be permanently disqualified from working in the real estate industry after admitting to unlawfully manipulating agency trust accounts over a three-year period.
Annette Josephine Cobb, formerly employed by real estate agency Darrell Crouch & Associates Pty Ltd, admitted during State Administrative Tribunal (SAT) proceedings to preparing 42 unlawful batch payments totalling more than $270,000 between January 2021 and February 2024. Those batch payments comprised 329 discrete payments to clients and suppliers and the agency itself.
After making false entries in property management software ‘REST’, Ms Cobb misled property owners and the agency in two ways : first, by falsely representing that homes were tenanted and that rent was being paid when the properties were in fact vacant and generating no income; and second, by falsely claiming that tenants who were paying rent were paying increased amounts, when no such rent increases had been implemented.
The SAT accepted that Ms Cobb’s conduct breached multiple provisions of the Real Estate and Business Agents Act 1978 and the Code of Conduct for Agents and Sales representatives, including acting in good faith, misleading clients and dishonestly depleting trust funds.
The SAT agreed with the orders proposed in the settlement agreement and directed that Ms Cobb be reprimanded, permanently disqualified from registration as a sales representative and pay $1,000 in costs.
Ms Cobb cooperated fully with the investigation of these matters and made early admissions to the misconduct. She cited extreme workload pressure and personal tragedy as contributing factors, but she accepted that her actions were wrong and should never have occurred. Her contrition was further demonstrated by the sale of two properties and a significant financial contribution to the trust account. As part of the settlement agreement, Ms Cobb apologised to the agency and the affected clients.
Commissioner for Consumer Protection Trish Blake welcomed the outcome as a strong reminder of the importance of integrity and accountability in the property management sector.
“Paying landlords rent for properties that were sitting vacant is not just a bookkeeping error – it’s a deliberate act of deception that undermines the integrity of the entire trust account system,” Ms Blake said.
“When anyone is paid funds from a trust account that were not deposited for their benefit, it puts genuine client money at risk.
“The Tribunal’s acceptance that permanently disqualifying Ms Cobb was appropriate in the circumstances sends a clear message: deceptive practices will not be tolerated, and those who misuse client funds will face serious consequences.
“We urge all agencies to maintain rigorous oversight of their financial systems and ensure staff are properly trained and monitored.”
For more information on the obligations of real estate agents, visit the Consumer Protection website or enquiries can be made by email consumer@lgirs.wa.gov.au or by calling 1300 30 40 54.
Media Contact: cpmedia@lgirs.wa.gov.au