Kraues and Migration Agents Registration Authority

This matter concerned an appeal by Mr. Kraues against a decision by the Migration Agents Registration Authority (the Authority) to cancel his registration as a migration agent. The Authority had found that Mr. Kraues was not a person of integrity or otherwise a fit and proper person to give immigration assistance, and that he had failed to comply with the Code of Conduct. The dispute arose from arrangements Mr. Kraues made with a group of miners from Papua New Guinea concerning their permanent residency applications in Australia.

The court was required to determine whether Mr. Kraues was a fit and proper person to give immigration assistance and whether he had complied with the relevant provisions of the Code of Conduct. Specifically, the court considered whether Mr. Kraues had acted in the legitimate interests of his clients, managed client monies appropriately, issued receipts and financial statements, kept proper financial records, and maintained the reputation and integrity of the migration agent profession. The court also examined whether the fees charged by Mr. Kraues were reasonable and whether he had provided adequate statements of services.

The court found that Mr. Kraues had not acted in the legitimate interests of his clients, nor had he managed client monies appropriately. Evidence indicated that Mr. Kraues had made withdrawals from client accounts without providing related services or making appropriate disbursements, and had inappropriately used withdrawn funds for his own purposes. The court was satisfied that statements made during the interview process suggested that assistance would be available for permanent residency applications, and that the miners understood they were paying for this assistance. The court rejected the argument that the substantial fees were for mere "availability," particularly when payment was required even after services could no longer be rendered. The court concluded that Mr. Kraues had failed to provide any service or account for money withdrawn from the trust account, and that his conduct had not maintained the reputation and integrity of the migration agent profession.

The court affirmed the Authority's decision to cancel Mr. Kraues' registration as a migration agent.