Realtor denies duping elderly pair
Charges state that valuation of $1.2m was concealed from sellers, resulting in a $725,000 profit for defendant
Areal estate agent accused of buying two elderly clients' home then selling it months later for a $725,000 profit has pleaded not guilty to criminal charges.
Former Papatoetoe-based Barfoot & Thompson agent Aaron Hughes was given bail and elected trial by jury when he made his first appearance in Auckland District Court yesterday.
He was ordered not to associate with plaintiffs or witnesses and will reappear in court in December.
Hughes could be jailed for up to seven years if convicted in relation to two property transactions in which court documents allege he personally benefited by hundreds of thousands of dollars.
Charges laid by the Real Estate Agents Authority (REAA) last month allege he obtained a valuation showing a Mt Wellington property he was selling for two Waikato brothers was worth at least $1.2 million.
Court documents allege he purchased it himself 11 days later, in a private sale through his company AzIz Rentals, for $530,000.
It is alleged the valuation was not disclosed to the elderly sellers, Jack and Walter Tata. He sold the house within months with little or no improvement work for $1.255m — a $725,000 profit.
Hughes was investigated by the REAA after the transaction was revealed by the Weekend Herald in April. He now faces one charge of causing loss by deception.
The charge has been laid under the Crimes Act, meaning the matter is being heard before the District Court and Hughes could face jail if found guilty by a jury.
Another charge alleges that Hughes, while acting as a real estate agent, obtained a Mangere Bridge property by deception between Octo- ber last year and January this year.
Charge documents say that on or about August 13 last year, Hughes obtained a valuation showing that the property was worth at least $720,000 and this was not disclosed to the vendor.
Hughes' company Kora Rentals then purchased the property in a private sale on October 12 for $590,000 and still owns it, according to QV records.
The final charge is for carrying out real estate work without a licence.
It is alleged that Hughes marketed three properties earlier this year through Trade Me after he had voluntarily suspended his licence when the Mt Wellington sale was revealed by the Weekend Herald.
Hughes was sacked by Barfoot & Thompson and referred for investigation to the REAA.
He will reappear in court in December.
His lawyer, David Jones, QC, entered not guilty pleas and elected trial by jury.
Barfoot has declined to comment on the matter while it is before the courts.
REAA chief executive Kevin Lampen-Smith earlier told the Herald that the agency's role was to protect consumers and promote professional standards so that agents who broke the rules were held to account.