PHOTO: The case has sent shockwaves through the property industry. FILE
A former New South Wales property manager has been sentenced after admitting to stealing more than $180,000 from renters, landlords and a real estate agency over a period spanning more than two years.
The case has sent shockwaves through the property industry and raised fresh concerns around trust account oversight, rental bond security and the growing risks facing landlords and tenants alike.
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Former Property Manager Pleads Guilty
Sarah-Jane Watts, a former property manager employed by Ewing Real Estate in Gunnedah, appeared before Gunnedah Local Court after pleading guilty to two offences under the Crimes Act 1900 (NSW).
Investigators discovered Watts had fraudulently obtained more than $151,800 from the agency’s rental trust account while also stealing approximately $35,400 in rental bond money.
Authorities confirmed there was no evidence Ewing Real Estate or principal Jarad Ewing were aware of the offending at the time.
A former property manager has been sentenced after stealing more than $180,000 from renters, landlords and a real estate agency over a two-year period.A former NSW property manager has been sentenced after admitting to stealing more than $180,000 from renters, landlords and a real estate agency over more than two years.
Sarah-Jane Watts, who worked at Ewing Real Estate in Gunnedah, was sentenced in Gunnedah Local Court after pleading guilty to two offences under the Crimes Act 1900 (NSW).
Investigators found Watts fraudulently obtained more than $151,800 from the agency’s rental trust account, along with about $35,400 in rental bonds.
How The Fraud Was Discovered
The misconduct was first detected by NSW Fair Trading’s Rental Bond team within the NSW Rental Taskforce after suspicious bond activity triggered concerns.
The matter was then referred to investigators, who uncovered a sophisticated scheme involving 162 fraudulent transactions between March 2022 and July 2024.
According to investigators, Watts transferred funds into six separate personal bank accounts she controlled while disguising the transactions among legitimate landlord payments.
Money Spent On Lifestyle Expenses
Court documents revealed the stolen funds were used on a range of personal lifestyle expenses including:
- Food
- Pub visits
- Hairdresser appointments
- Holidays
Investigators said the fraudulent payments were intentionally concealed within standard rental payment processing systems to avoid detection.
Court Hands Down Sentence
The court sentenced Watts to a 12-month community corrections order, during which she will remain under strict supervision by Community Corrections.
She was also ordered to:
- Repay $35,399.23 to the Rental Bond Board
- Pay $100,000 compensation to Ewing Real Estate
- Cover $750 in professional costs
Authorities also confirmed Watts no longer holds a real estate licence.
Real Estate Agency Forced To Compensate Clients
Ewing Real Estate had already compensated affected clients before the sentencing outcome.
The agency and principal Jarad Ewing have since entered into enforceable undertakings with NSW Fair Trading requiring:
- Additional staff training
- Stronger auditing systems
- Contributions to the NSW Consumer Law Fund
The case highlights the enormous financial and reputational damage that trust account fraud can inflict on real estate businesses.
NSW Government Responds
Minister for Better Regulation and Fair Trading Anoulack Chanthivong strongly condemned the offending following the sentencing.
“Deceiving and stealing from people across the property market is deplorable,” he said.
The Minister said the prosecution demonstrated the NSW Rental Taskforce was actively enforcing rules designed to protect renters and landlords from misconduct.
NSW Rental Commissioner Trina Jones also stressed the importance of maintaining public trust within the property sector.
“Real estate agents handle large sums of money on behalf of consumers for payments such as rental moneys and bonds and it’s crucial that trust with consumers is maintained,” she said.
Growing Concerns Around Property Industry Trust Accounts
The case is likely to intensify calls for:
- Stronger trust account monitoring
- Increased auditing requirements
- Greater transparency in rental payments
- Tougher penalties for fraud within the property industry
With landlords and tenants already under financial pressure from rising rents and housing costs, cases involving misuse of rental money are likely to further damage public confidence in parts of the real estate sector.
SOURCE: YAHOO