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Barry Goldman of Leda Real Estate jailed for two years for more than $600,000 in fraud

Lucy Cormack

A real estate agent, who advertised his agency online as "one you can finally trust", will face two years' imprisonment after fraudulently converting more than $600,000 in trust account funds.

Barry Goldman, of Leda Real Estate and Portfolio Property Solutions, will remain behind bars following an unsuccessful appeal against charges brought against him by NSW Fair Trading, under the Property Stock and Business Agents Act. 

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Fraudulent real estate agent convicted

Real estate agent Barry Goldman advertises his agency online as "one you can finally trust".

Goldman was sentenced to two years' imprisonment with an 18-month non-parole period for taking more than $600,000, which he claimed to have used to fund family legal proceedings. 

"Mr Goldman had been robbing Peter to pay Paul, with no plan to pay the money back," NSW Fair Trading Commissioner Rod Stowe said. 

"This is very significant. We are very pleased the court has decided to confirm the custodial sentence, we think that sends a very strong message to the market place."

Mr Stowe said the court's action demonstrated the seriousness of the offence.

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"At the end of the day, what's really important, with third parties looking after money, is their trustworthiness."

The consumer watchdog was first made aware of Goldman's case at the end of 2014, when the agency, Leda Real Estate Pty Ltd, failed to account for funds and failed to hold money in trust pending completion of sales transactions.

Fair Trading later discovered that Goldman had fraudulently converted $651,183.24 for personal use.

More than $20,000 in rental money owed to landlords was also fraudulently converted by Portfolio Property Solutions Pty Ltd, of which Goldman was the director at the time.

Goldman's licence has been cancelled and he has been banned from working in the industry for 15 years.

The Barry Goldman who is subject to this report is not the licensed real estate agent Barry Ian Goldman of Sydney Sotheby's International Realty Double Bay.

Since September 2014 at least 10 real estate agents have been prosecuted and had their licences revoked.

The issue has been a growing problem for the NSW property industry. Poker machines, amphetamine, flights and entertainment are just some of the habits paid for with more than $3.6 million in trust account funds stolen by NSW real estate agents in the past two years.

In November, NSW Minister for Innovation and Better Regulation Victor Dominello announced a raft of new regulations to be introduced by the government early this year, amid a stream of wider reforms to the real estate and property sector.

Under the changes, agents will be required to transfer rental income to landlords at the end of each month and to hold separate trust accounts for rent and sales money.

In addition, NSW Fair Trading will be granted a new power to suspend a licence or a certificate of registration temporarily while an investigation is under way.

"The changes announced by the NSW government will ensure that consumers are better protected, industry standards are lifted and funds given to agents in trust are properly managed," Mr Dominello told Fairfax Media in November.