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$270k trust fund scandal: Perth property manager disqualified
A Perth sales representative has admitted to dishonestly misusing over $270,000 in client trust accounts over three years, resulting in a permanent ban from working in real estate.
Annette Josephine Cobb, formerly employed by real estate agency Darrell Crouch & Associates, prepared 42 unlawful batch payments totalling more than $270,000 between January 2021 and February 2024.
Cobb admitted to the offences during State Administrative Tribunal (SAT) proceedings.
Consumer Protection Western Australia said the batch payments comprised 329 separate payments to clients, 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,” it said.
The first way she misled was by falsely representing that homes were tenanted and that rent was being paid, despite the properties being vacant and generating no income.
The second way Cobb misled the agency and property owners was by falsely claiming that tenants who were paying rent were paying increased amounts, although no such rent increases had been implemented.
The SAT agreed that Cobb’s conduct was in breach of multiple provisions of the Real Estate and Business Agents Act 1978.
Additionally, the SAT said that her behaviour went against the code of conduct for agents and sales representatives, including misleading clients and dishonestly depleting trust funds.
The SAT agreed that Cobb should be reprimanded by being permanently disqualified from registration as a sales representative and paying $1,000 in costs.
“Ms Cobb cooperated fully with the investigation of these matters and made early admissions to the misconduct,” Consumer Protection Western Australia said.
“She cited extreme workload pressure and personal tragedy as contributing factors, but she accepted that her actions were wrong and should never have occurred.”
Cobb’s remorse for her actions was further demonstrated as she made a “significant” financial contribution to the trust account.
In addition, as part of the settlement agreement, Cobb apologised to the agency she worked for and to clients who were affected.
Commissioner for Consumer Protection, Trish Blake, said paying landlords rent for properties that are sitting vacant is a “deliberate act of deception”.
“When anyone is paid funds from a trust account that were not deposited for their benefit, it puts genuine client money at risk,” she said.
She said Cobb’s disqualification sends a clear message that deceptive practices will not be tolerated, and those who misuse client funds will face severe consequences.
“We urge all agencies to maintain rigorous oversight of their financial systems and ensure staff are properly trained and monitored,” Blake said.