Alan Temelkov convicted after Narwee trust fund misappropriation

NSW Fair Trading has recently prosecuted a former real estate agent for misappropriation of trust funds in relation to a property development in Narwee.

Alan Temelkov was convicted of 7 offences under the Property Stock and Business Agents Act and sentenced to 18 months imprisonment, to be served in the community. He was also ordered to pay over $235,000 in reparation for his offences.

In September 2012, Mr Temelkov, director of Tyron Holdings Pty Ltd, trading as AMJ Properties, was contracted to manage the sale of a number of units in a Narwee development.

Tyron Holdings Pty Ltd received a number of house deposits which should have been deposited into a trust account and held on behalf of the sellers until completion of the sale.

During Fair Trading’s investigation, Mr Temelkov admitted to his failure to deposit the funds in the trust account, instead spending the money on business expenses and his personal gambling habit.

As a result, the sellers were left significantly out of pocket and were required to make application to the Property Services Compensation fund for restitution.

Fair Trading Commissioner, Rod Stowe, advises that trust account fraud is a serious offence and warns that Fair Trading will actively pursue any persons that fail to comply with their trust account obligations. 

“Property is a significant purchase. Real estate agents should be trusted to deposit payments received for sales into the correct account,” Mr Stowe said.

Mr Temelkov was sentenced on Thursday 8 September 2016 and has 28 days to appeal.