A former real estate agent in Australia was sentenced to four months in prison for misusing his clients’ homebuying deposits.
News.com.au reported Justin Scavo, who was sole director of Revolve Real Estate, started withdrawing money from the trust accounts of four homebuyers in April 2018 after experiencing “cash flow problems.” During a 16-month period, Scavo funneled roughly $96,000 of his clients’ funds into his bank accounts, which he used to cover business costs, gambling expenses and sending money to family overseas.
Scavo, who lost his license and was forced to close his business, pleaded guilty to 12 offenses including 11 charges of causing $185,320 in trust account deficiencies and one charge of fraudulently converting that same amount for his own personal use. Scavo was ordered by the court to pay $101,601 in compensation to the Victorian Property Fund (VPF); more than $120,000 in claims against Scavo’s company have been paid out from the VPF to date.
After his prison term, Scavo will need to complete a two-year community corrections order with 180 hours of unpaid work.
“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,” said Consumer Affairs Victoria Director Nicole Rich. “We will continue to pursue agents and agencies who put their clients’ money at risk and hold them accountable.”
Photo: Justin Scavo
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