Sydney real estate agent convicted for misusing trust account funds
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Photo by Mikhail Nilov
In a significant legal development, a Sydney-based real estate agent has been convicted for misusing over half a million dollars from her agency’s trust account. The case, which has drawn attention to the integrity of real estate practices, involved Huijuan ‘Jenny’ Zhou of EW Property Group, who pleaded guilty to three charges following an investigation by NSW Fair Trading.
The investigation revealed that Ms Zhou had systematically diverted housing deposits held in the business trust account for personal use. These misappropriations included using the funds for loan repayments on her home and purchasing an office. One notable incident involved the misuse of a $190,000 house deposit. When the property was subsequently sold to another buyer, Ms Zhou failed to communicate with the original purchaser, leaving them in the lurch.
The funds were eventually repaid, but only after the affected consumer engaged legal counsel and lodged a formal complaint with NSW Fair Trading. In another case, it took Ms Zhou an alarming 15 months to return the full $123,000 owed to a consumer.
Acting NSW Fair Trading Commissioner Andrew Floro expressed strong condemnation of Ms Zhou’s actions. “Misuse of client funds by a real estate agent is a serious breach of trust, particularly when people are seeking to buy a home,” he stated. Mr Floro emphasised the gravity of the situation, adding, “This prosecution shows NSW Fair Trading will not tolerate real estate agents who act dishonestly.”
On 17 June 2026, Ms Zhou was sentenced in the Parramatta Local Court after pleading guilty to three offences under the Property and Stock Agents Act 2022. The charges related to the fraudulent acquisition of $539,000 from the company’s trust account over a period from 2 October 2023 to 19 December 2023. Ms Zhou was handed a 10-month intensive corrections order, which includes a requirement to complete 100 hours of community service.
The case underscores the importance of trust accounts in the real estate industry. As Mr Floro pointed out, “Trust accounts exist to protect consumers, not to be treated as a personal line of credit. Agents who misuse client funds are breaking the law and will face enforcement action.”
The NSW Fair Trading’s Name and Shame Register has been instrumental in promoting transparency and accountability within the sector. This register allows consumers to make informed decisions when dealing with property professionals and acts as a deterrent against unethical behaviour by agents. Ms Zhou’s conviction will be prominently listed on the Register, serving as a cautionary tale for others in the industry.
Mr Floro reiterated the government’s stance on consumer protection, stating, “Anyone who breaches the rules will face consequences, demonstrating the NSW Government’s commitment to protecting consumers.”
The Name and Shame Register can be accessed online, providing a valuable resource for consumers to verify the credentials and conduct of real estate professionals. The register can be visited at www.nsw.gov.au/departments-and-agencies/fair-trading/how-we-regulate/name-and-shame-register.
This case serves as a reminder for consumers to remain vigilant and report any suspected misconduct to NSW Fair Trading. Reports can be submitted online at www.nsw.gov.au/fair-trading.
The conviction of Ms Zhou highlights the critical need for ethical practices in the real estate industry and reinforces the role of regulatory bodies in safeguarding consumer interests. As the sector continues to evolve, maintaining trust and integrity remains paramount for both consumers and professionals alike.