REAL estate agency LJ Hooker’s Keysborough office has been shut down amid allegations of misappropriation of client funds.
The company’s head office terminated six franchise branches of LJ Hooker Glen Waverley, including Keysborough, operated by JNT Law Investments, on 21 April due to what it said was “a fundamental breach of its franchise agreements”.
The ABC reported that the franchise agreements were terminated amid allegations that hundreds of thousands of dollars in deposits had gone missing.
The ABC has reported that Dandenong couple Katarina and John Melah were left $61,000 out of pocket after selling their house in January through the Keysborough branch.
The Minister for Consumer Affairs, Jane Garrett, has appointed Garry McLean of PPB Advisory as statutory manager.
According to Consumer Affairs, Mr McLean has been instructed to reconstruct records, deal with outstanding consumer and landlord or tenant transactions, and wind the business down.
He is writing to all known landlords who had their properties managed by one of these offices, advising them of their options.
LJ Hooker said it had also formed a specialist team to work with Consumer Affairs.
Tenants who paid rent through one of the affected offices should contact their landlord directly to make arrangements for future rent payments.
They should contact the statutory manager if they do not have their landlord’s contact details.
The Victorian Property Fund may provide compensation to consumers who have lost money due to the actions of an estate agent.
For more information about the fund and how it works, visit the Consumer Affairs compensation claims – property page.
Affected clients can contact the statutory manager on 9269 4116 or at jntlaw@ppbadvisory.com.
Have you lost money? Contact Journal reporter Casey Neill at casey.neill@starnewsgroup.com.au.
