Chief Executive, Department of Justice and Attorney General v Mikealy Pty Ltd

The respondent, Mikealy Pty Ltd, together with its director, Mr Keith Frederick Chadban, faced scrutiny by the tribunal following an investigation into their conduct as real estate agents. The Chief Executive of the Department of Justice and Attorney General brought proceedings against the respondent and Mr Chadban, alleging that they had failed to maintain proper trust account records, resulting in the overdrawing of trust account ledgers and the transfer of trust monies into a business account to keep the business running. The tribunal was required to determine whether the allegations were substantiated and, if so, what sanctions should be imposed.

The primary legal issues before the tribunal were whether the respondent and Mr Chadban had breached their professional obligations by mismanaging trust account funds and failing to maintain proper records. The tribunal needed to consider the nature and extent of the breaches, as well as the impact of these breaches on consumers and the public interest. The tribunal also had to decide whether the respondent and Mr Chadban had acted negligently, recklessly or intentionally, and what, if any, mitigating factors were present.

After reviewing the evidence, the tribunal found that the respondent and Mr Chadban had indeed breached their professional obligations. The tribunal concluded that the breaches were serious and had the potential to cause harm to consumers, even though no consumer suffered loss in this instance. The tribunal determined that the breaches were not intentional but were the result of negligence and a lack of proper record-keeping. The tribunal further found that the respondent and Mr Chadban had not shown remorse for their actions or taken adequate steps to rectify the situation. As a result, the tribunal imposed the penalties outlined in the orders section of the judgment.

The tribunal reprimanded Mikealy Pty Ltd and Keith Frederick Chadban and disqualified them from holding a licence or registration certification under the Property Agents and Motor Dealers Act 2000 for a period of 10 years. Keith Frederick Chadban was also disqualified from being an Executive Officer of a corporation that holds a licence or registration certificate under the Act for the same period. Additionally, Mikealy Pty Ltd was ordered to pay a fine of $8,250, and Keith Frederick Chadban was ordered to pay a fine of $5,500 by 1 December 2012. The tribunal emphasised the importance of proper trust account management and record-keeping for real estate agents to protect consumers and maintain public confidence in the industry.