‘You’ll be caught’: estate agents on notice as dodgy LJ Hooker couple jailed for ‘ponzi-style’ scheme

A couple jailed for using their former LJ Hooker estate agency to fleece Melbourne clients with a “ponzi-style” scheme shows other dodgy agents the law will catch up with them too, Victoria’s consumer watchdog says.

Truc Thanh Le Nguyen, also known as Judy Nguyen, and husband Joseph Ngo, also known as Tri Doc Ngo outside the Melbourne Magistrates' Court. Picture: Herald Sun

A former real estate boss’s 20-month jail sentence for misappropriating more than $800,000 of clients’ money should serve as a warning to rogue agents, Victoria’s consumer watchdog says.

Truc Thanh Le Nguyen, also known as Judy Nguyen, will join her husband behind bars and spend eight months there before being eligible for parole, the County Court heard on Tuesday.

Ms Nguyen, 44, pleaded guilty last month to 11 counts of fraudulently converting to her own use deposits totalling $809,016, received by her company JNT Law Investments Pty Ltd from January to March 2016.

JNT traded as six LJ Hooker offices, and the deposits related to 11 home sales across Glen Waverley, Deer Park, Caroline Springs, Narre Warren, Berwick, Dandenong, Docklands and Parkdale.

The mother of four was also fined $1500 for failing to comply with her duties as officer in effective control of her business.

Consumer Affairs Victoria director Samuel Jenkin said the sentence — and the five-year jail term received by Ms Nguyen’s husband and co-accused, Tri Duc Ngo, last year — “reinforced to all real estate agents that if they are doing the wrong thing, they will be caught and … face the full force of the law”.

“It’s vitally important people have trust in the system,” he said.

“We’ve had a number of issues of trust account misappropriation and charges laid and sentences, but this is a really significant one and we’re really pleased with the way this has unfolded.”

Mr Jenkin said CAV would notify the body responsible for estate agent licensing, the Business Licensing Authority, of the court’s ruling “to ensure (they) can make an appropriate decision” regarding Ms Nguyen.

Judge Michael Bourke told the County Court the offending represented a “serious failure in trust”.

Joseph Ngo and Judy Nguyen in their LJ Hooker days. Picture: Supplied

“People are heavily dependent on licenced persons to manage and assist land sales and purchases,” Mr Bourke said.

“These are not just financial transactions for many people. The advantage is very much in favour of the professional.

“This scheme had some sophistication, was dishonest behaviour, and ultimately the aim was your (Ms Nguyen’s) benefit.”

The court heard Mr Ngo, also known as Joseph Ngo, initiated the “ponzi-style” scheme in 2015 and Ms Nguyen became complicit the following year.

Mr Ngo was jailed in 2018 for five years, with a three-year minimum, after pleading guilty to 48 charges.

The scheme involved moving money from sales and rental trust accounts — where it was meant to be held until being released directly to vendors and landlords — and extracting it.

Mr Ngo fuelled a drug habit and extravagant jewellery and clothing purchases with the funds.

A total of about $6.4 million was misappropriated — $2.1 million of which had to be repaid to victims via the Consumer Affairs Victoria-administered Victorian Property Fund.

“That loss to the Fund has been recovered in action against LJ Hooker,” Mr Bourke said.

He said while ultimately no victims suffered any financial loss, many experienced “anxiety and stress”.

He said had Ms Nguyen not pleaded guilty, expressing “acknowledgment and remorse”, he would have increased her sentence to three years’ imprisonment with a minimum of 18 months.

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The charge of carries a maximum penalty of 10 years’ imprisonment.

This was despite the fact her guilty plea to 11 of more than 50 charges came late — after her jury trial had run for two full days.

Ms Nguyen’s defence initially told a jury Mr Ngo had committed the crimes without her knowledge, as she retreated from work in 2014 and 2015 due to a difficult pregnancy, resulting in the birth of her fourth child, and a cervical cancer diagnosis.

The defence later stated Ms Nguyen had joined the offending in an attempt to save her business.

Mr Bourke said in his sentencing, he also took into account Ms Nguyen’s “otherwise good character”, having no criminal history and being a “generous, respected person who contributes to her community (and) values and supports her family”.

Her imprisonment would also be “significantly more difficult” given she would be separated from her children, he said.

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