Former property manager banned for decade after $187,000 fraud

A former NSW property manager who diverted rental trust funds and bond payments into personal bank accounts has been barred from working in the real estate industry for 10 years.

Sarah-Jane Watts, formerly employed by Ewing Real Estate in Gunnedah, has been disqualified from the industry after stealing more than $187,000 from the agency, landlords and renters.

NSW Fair Trading found the conduct was deliberate, repeated and posed a significant risk to both consumers and the integrity of the real estate profession.

The decade-long ban follows criminal proceedings in Gunnedah Local Court, where Watts pleaded guilty to two offences under the Crimes Act 1900.

Between March 2022 and July 2024, Watts transferred approximately $151,800 from the agency’s rental trust account through 162 fraudulent transactions.

The money was directed into six personal bank accounts under her control.

A further $35,400 was misappropriated through rental bond transactions, bringing the total amount involved to more than $187,000.

Investigators found the unauthorised transfers had been concealed among legitimate mid-month and end-of-month payments intended for landlords.

Bank records showed the money was subsequently spent on personal expenses, including food, visits to pubs, hairdressing appointments and holidays.

The activity was first detected by the Rental Bond team within the NSW Rental Taskforce after suspicious bond transactions were identified and referred to Fair Trading investigators.

Watts was sentenced to a 12-month term of imprisonment to be served in the community under the supervision of Community Corrections.

She was also ordered to pay $35,399.23 in compensation to the Rental Bond Board and $100,000 to Ewing Real Estate, which had reimbursed affected clients. The amount ordered in favour of the agency was the maximum compensation available through the Local Court.

A further $750 was imposed in professional costs.

Her real estate licence was cancelled following the investigation, with NSW Fair Trading now imposing an additional 10-year disqualification.

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said stealing from renters and others involved in the property market was unacceptable and pointed to the prosecution as evidence that the NSW Rental Taskforce was actively pursuing misconduct.

Ewing Real Estate and its principal, Jarad Ewing, have entered into enforceable undertakings with NSW Fair Trading.

Those undertakings require additional staff training, stronger auditing and internal controls, and a contribution to the NSW Consumer Law Fund.

The agency had already compensated the clients affected by the fraudulent transactions.

For agency principals, the case is a stark reminder that trust-account risk extends well beyond whether the books appear to balance at the end of the month.

The offending involved 162 separate transactions over more than two years, hidden among ordinary landlord disbursements. It demonstrates why meaningful oversight cannot depend exclusively on one employee, one report or a routine reconciliation process.

Clear separation of duties, independent review of transactions, restricted payment authorities and careful investigation of irregular bond activity remain critical safeguards for every property management business.

The financial loss in this case was substantial. The damage that similar conduct can cause to an agency’s clients, staff, reputation and regulatory standing can be greater still.