A lettings manager who stole some £45,000 from tenants to fund his gambling addiction has been sentenced to a year and eight months in prison.
Shockingly, Lee Grace has been branded by police as a repeat offender, having already committed similar offences at other agencies, and serving time in prison.
Grace went to work at Kings Hill estate agents near West Malling, Kent, with boss Tony Petty totally unaware of his previous form. Police say he took this job knowingly, because it would give him the opportunity to steal and defraud.
When it came to working at, and stealing from, estate agents, Grace had a record as EYE reported last year:
https://www.propertyindustryeye.com/agent-jailed-for-18-months-after-pleading-guilty-to-fraud/
After Grace’s latest sentencing on Friday last week at Maidstone Crown Court, Petty told EYE: “I would never have taken him on had I known of his past.
“I do think agents whose employees have records have a duty to speak out and warn other employers.
“Lee Grace was charming and plausible – and he has cost my firm an enormous amount of money. I also had no idea he had a gambling problem.”
In the latest case, Grace went to work for Kings Hill estate agents towards the end of 2014. Over the following 15 months, he pocketed multiple payments from tenants instead of depositing them in his employer’s bank account.
He disguised his criminal activity by reconciling different accounts with cash and cheque payments from various other tenants.
The fraud was uncovered in February 2016 when the firm received a complaint from a landlord that his rent had not been paid.
Grace was originally accused of taking over £78,000, but he disputed this. He claimed it was around £16,000, but the judge put the figure at £45,000.
While the amount was disputed, Grace – who had just finished his earlier prison sentence – admitted fraud and transferring criminal property.
In February 2016 the firm received a complaint from a landlord that his rent had not been paid, and police were called in.
Police believe the number of tenants affected by the dishonesty was around 44. Kings Hill has covered all the losses so that no tenants were out of pocket.
Tenants gave statements confirming they had handed over cash to Grace and signed a receipt for payment.
One couple paid a total of £10,153 in cash to Grace in 2015 but the firm’s accounts showed nothing had been deposited against them.
Another couple went to the estate agent offices in June last year to give notice of leaving and found there was no record of them ever being registered at the property.
They had paid Grace a holding fee of £550 and £3,140 in rent in advance.
On investigation by police, Grace’s bank statements revealed numerous payments to bookies Gala Coral Group.
He had opened an account with Gala Coral in May 2015 and had deposited almost £60,000 up until February last year.
Judge Philip St John-Stevens totally rejected a suggestion by Grace that Kings Hill was siphoning off cash to evade corporation tax.
He branded Grace a “thoroughly dishonest individual” in a downward spiral of gambling.
Speaking after the sentencing on Friday, Detective Constable Craig Malthouse said: “Grace has abused the good faith and trust shown in him by his employer in the worst possible way.
“Tenants also trusted him, paying him significant sums of money to secure a new home, or ensure their monthly rental fees had been received on time.
“They had no idea that instead Grace would steal this money, in order to fund a lifestyle which included spending tens of thousands of pounds on a gambling habit.
“Grace didn’t stumble into criminality by chance.
“He is a repeat offender and took this job knowing fully that it would give him the opportunity to steal and defraud.
“A custodial sentence is therefore entirely appropriate.”
The Lee Grace case highlights whether estate agent employers and members of the public should have access to the ‘blacklist’ of letting agents due to be published from this autumn.
Currently, it will only be accessible by local and central government officials. It is possible that Grace might not be allowable on to a new list of letting agents, under government plans to license letting agents.
As matters stand, however, there is nothing to stop him working in the lettings industry after release from jail.
http://www.kentonline.co.uk/malling/news/lettings-boss-stole-thousands-from-133660/
“The Lee Grace case highlights whether estate agent employers and members of the public should have access to the ‘blacklist’ of letting agents due to be published from this autumn.”
Wha on earth would be the use of a black list of agents cannot view it ???
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*If, not of
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Only 18 months in jail?
He’s lucky I wasn’t dishing out his punishment. Minimum 5 Years!
It may be an addiction however he knowingly deceived, stole and spent.
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Shocking behaviour from Grace but how did the boss of the letting agency not notice that much money going missing for 15 months? And what about those landlords weren’t they ringing up complaining a lot sooner? If we have a system problem and pay people a day late all hell breaks loose. And what about taking all that cash, is HMRC not bothered re money laundering regs? And did the employer take up references? If there’s a blacklist his boss should be on it too!
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Bit harsh on the owner.
If you trust somebody to run the lettings side very hard to pin point this if a large portfolio.
When people are under pressure and steal as this chap has done they can be very cunning.
Also the 15 months is including while the criminal was investigated.
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One assumes that no references on this crook were taken from previous employers? My experience shows agents are incredibly lax on making background checks on new employees – often just desperate to put a bottom on a seat.
Proposed disclosure and barring checks that are likely to come in next year as part of AML compliance would help identify those with previous convictions.
Due diligence needed.
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Spot on Mike re referencing. I don’t think the system helps though. Most employers are loathe to say too much about ex-employees other than perhaps confirming the dates they worked at the company. Many even come to an agreement that they will ‘give a good reference’ to ease their conscience when letting an employee go.
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As an employer i have to take a chance on staff from time to time.
The last lady we employed we could not get a reference for her as the previous competing agent ignored requests.
Am i to let her go through probation as i have not got a reference?
Sadly some agents are just awkward. Its not fair to point the finger at the employer in this case without knowing all the facts.
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This just confirms that no matter how many laws you have, Crooks will be Crooks. As Mrs Serious says: Weeds will always grow.
No matter how many ‘Blacklists’ or new Landlord or Agent Regulations there are, thieves will survive and breed. In fact, you could argue perversely that the more a sector is regulated, the more it advertises how much there is to steal, so the more attention crooks will pay to it.
The Theft Act 1968 and the Fraud Act 2007 seem pretty all-encompassing to me.
Crooks don’t care two hoots about rules. But they do care about getting nicked and having their freedom AND MONEY taken off them.
What we DO need is a proper week-killer. Proper ENFORCEMENT of all the current rules – criminal and civil – that we already have. Just pathetically bringing in more rules will simply mean that more rules keep getting broken.
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Kudos to King Hill for covering the cost to the tenants.
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References, if you can get them, aren’t worth the paper they’re written on. Firms are too frightened to be truly honest so limit it to dates and job title.
Also how many people have accepted a ‘to whom it may concern’ reference from the prospective employee which they could easily have written themselves using headed paper they took with them?
Apart from people like this we have to bear in mind that our industry offers rich pickings for people carrying out identity or property fraud and preying on vulnerable people.
A simple online HR screen would cover it, even the most detailed one is less than £100.
.
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