Disgraced Real Estate Agent Who Fled Australia After $500K Fraud Faces New Legal Blow

PHOTO: Supreme Court Demands She Return to Australia for Sentencing After Fraud Scandal. FILE

Former Belle Property Byron Bay Director Sarah Dougan’s Attempt to Avoid Justice Fails

A high-profile former real estate agent who misused over half a million dollars in trust funds while working as a director at Belle Property Byron Bay has been ordered to return to Australia for sentencing after losing her Supreme Court appeal.

Sarah Dougan, now living in the United States, had pleaded guilty to a string of fraudulent offences dating back over a decade. Despite building a new life overseas—including a career as a medical lab CEO, marriage, and raising five children—her past has come back to haunt her in a legal ruling that sends a strong signal to the Australian real estate industry.

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💸 The Fraud That Rocked Byron Bay’s Real Estate Scene

The story begins in 2011 when NSW Fair Trading launched an investigation into Belle Property Byron Bay after several clients raised concerns that the agency had failed to “account at settlement” when transferring property ownership.

During the probe, Dougan reportedly submitted false NAB bank statements for two real estate trust accounts. However, investigators quickly discovered that $534,320.99 was missing—a figure that would lead to one of the most significant trust account fraud cases in recent real estate history.

While legal proceedings were initiated in 2013, Dougan had already relocated to the United States in 2012.

🧾 Court Battles and an Attempt to Avoid In-Person Sentencing

Between 2020 and 2021, Dougan pleaded guilty in Parramatta Local Court to multiple charges, including:

Misappropriation of client trust funds
Creation and submission of falsified financial records

She also repaid $373,917 to the Property Services Compensation Fund. Despite this, she failed to attend her sentencing hearing in 2023, instead requesting to be sentenced via video link from the United States—a request the NSW Supreme Court has now denied.

“It is entirely appropriate the sentencing for those offences occurs in NSW in person,” said NSW Fair Trading Commissioner Natasha Mann.
“Our persistence sends a clear message to real estate agents about how seriously the regulator takes cases of fraud and non-compliance.”

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🌎 From Byron Bay to the US: A Reinvented Life

Since leaving Australia, Dougan has established herself in the United States, reportedly living in a multimillion-dollar mansion while working as the CEO of a medical testing laboratory. She has since married and is raising five children.

Dougan’s legal team, led by Omar Juweinat, argued that she was unaware of the charges until 2017, when she applied for US permanent residency. They also successfully argued to have a 2013 warrant quashed, after the court determined it had been mistakenly recorded in the JusticeLink system.

However, this partial victory has done little to shield her from facing justice in person.

🏛️ Supreme Court Rules: She Must Return

In a ruling last week, the NSW Supreme Court formally denied Dougan’s appeal to be sentenced via audiovisual link, reinforcing that sentencing must occur in Australia.

The court cited not only the seriousness of the offences but also the broader implications for trust in the real estate industry and the importance of in-person accountability.

As part of the ruling, Dougan was also ordered to pay court costs, and her legal team is now preparing to escalate the matter to the High Court, with arguments centering on whether a remote appearance qualifies as presence under law.

Former Byron Bay real estate agent Sarah Dougan (pictured) has been refused lost her appeal to appear before court remotely

🕵️‍♂️ Industry Reaction and Implications

This case has sent shockwaves through the Australian property sector, especially in the Byron Bay region, where Dougan once held a prominent role. Regulators and consumer advocates are using the case to reinforce the importance of transparency, compliance, and integrity in managing client funds.

The Australian Competition and Consumer Commission (ACCC) and NSW Fair Trading have both renewed their warnings to agencies: breaches of trust laws will be met with full legal force, regardless of the time passed or geographic location.

📌 Why This Matters for the Real Estate Industry

With growing public scrutiny on property professionals and increased regulatory oversight, the Dougan case highlights the long memory of compliance law in Australia.

This is more than just a legal story—it’s a cautionary tale for real estate agents across Australia and New Zealand. Real estate businesses must ensure robust trust account audits, compliance training, and transparency, or risk facing similar investigations.