By Mitchell Clarke
A Berwick real estate agent will spend the next nine months in jail after he was caught stealing $175,000 from clients.
Geoff Horne, 55, was sentenced in the County Court on Monday 29 June, after he pleaded guilty to two charges of theft.
Judge Martine Marich said the “serious and concerning” offending began in May 2018, when Mr Horne’s company – Geoff Horne Real Estate Pty Ltd – was engaged to sell a Berwick property.
The buyer deposited $71,500 into the agent’s trust account – but rather than passing the money on to his clients – Mr Horne took the funds.
On 28 separate occasions throughout July and August 2018, Mr Horne withdrew various amounts of money – including more than $60,000 in one transaction.
Mr Horne targeted another client after successfully selling their Cranbourne West property in late August of the same year.
On that occasion, the buyer deposited $104,000 into the account and Mr Horne withdrew the cash through a further 18 transactions.
The court heard his victims repeatedly tried to make contact regarding the whereabouts of their money, but were unable to get a hold of him.
His offending only came to the attention of police in December 2018 after one of the victims made a formal complaint.
Mr Horne was eventually arrested and interviewed by police on 2 May 2019. When interviewed by police, he was in a $200,000 debt, including credit card debts.
The court heard Mr Horne told police the fund was used to hold deposits prior to settlement, before he released the money to the vendor.
He said business had slowed down during the time of offending and admitted to using the trust money to support himself and the business, with the intention of paying back each vendor.
Mr Horne was stripped of his agent license but he’s since began a new business venture – providing advice and support to up to 25 real estate agents, particularly sole traders.
Judge Marich said Mr Horne knew trust money was protected through Consumer Affairs and would be paid back to the clients.
“You said that you knew what you had done was wrong, and that the vendors would have gone through heartache, but the system has it in the back of your mind that they are getting paid back,” she said.
“You admitted that you knew you shouldn’t do this but you always thought you would be able to catch up.
“You couldn’t catch up. You got to a point where you were taking money from the next sale to pay the last sale but then the market stopped and you couldn’t sell anymore.”
In sentencing, Judge Marich acknowledged Mr Horne had good prospects of rehabilitation, citing an early guilty plea, genuine remorse and strong family support, but said his offending was “serious and concerning”.
“You received very substantial amounts on your clients behalf to entrust and then you immediately brazenly misused your fiduciary position to draw down those moneys for your own purposes,” Judge Marich said.
“I know that you did not use the funds to fund an illicit habit such as gambling or the consumption of drugs.
“Your personal and business finances were in tatters and you resorted to stealing from your beneficiaries in order to keep your modest lifestyle intact and to repay moneys that you had taken from other clients.”
Mr Horne was sentenced to nine months imprisonment and will serve a 12 month community corrections order upon his release.
He was also ordered to pay $165,476.01.
