Two real estate agents miffed at losing a sale embarked on a protracted bid to extort thousands of dollars from a rival agent, a tribunal has found. Photo / 123RF
Two real estate agents miffed at losing a sale embarked on a protracted bid to extort thousands of dollars from a rival agent, a tribunal has found. Photo / 123RF
Two real estate agents unhappy at losing a sale threatened to "extort" thousands of dollars from a rival agent, a tribunal has found.
Former Century 21 agents Michael Black and Lawrence Wong originally demanded $24,000 plus GST from their competitor Ian Smith and threatened to lay a complaint against himwith the industry watchdog if he refused to pay up, a Real Estate Agents Disciplinary Tribunal decision says.
They claimed the money was owed to them in commission after a 2012 offer by their own clients on a Howick property was pipped by Smith's successful buyer, leaving the pair "very unhappy".
The tribunal found that several threats were made against Smith, with Black warning that Wong was "getting very agitated" and on another occasion telling Smith "you don't need the hassle of an REAA inquiry".
"You better hurry up and pay as Lawrence (Wong) is losing patience and won't wait much longer and will complain to the REAA," Black was alleged to have said.
Wong and Black later dropped their demand to $15,000 at a meeting which Smith agreed to "as a means of ending the harassment", says the decision, which was handed down in September but only just publicly released.
Smith shook their hands and decided to get their demands in writing as evidence.
Wong drafted a written receipt acknowledging that payment by Smith would be "full and final settlement" and undertaking "not to initiate any complaint legal or other action to the REAA or any other body", the decision says.
Michael Black no longer works as a real estate agent. Photo / File
After Smith later refused to pay, Wong lodged a complaint to the watchdog, which was ultimately dismissed.
The pair subsequently became the subject of their own REAA investigation and disciplinary charges.
Wong and Black were found guilty of misconduct, with their attempts to "coerce" Smith labelled a reckless or wilful contravention of the Real Estate Agents Act.
The pair, who have since left the industry, have been suspended for eight months, fined $1500 and censured.
After being charged, Black acknowledged he could now see it was improper to seek money in return for shelving a complaint against Smith, the decision says.
Lawrence Wong has also left the industry. Photo / File
Wong told investigators he did not know Black had been making threats and denied trying to "blackmail" anyone.
He admitted working on a complaint against Smith on behalf of the vendors, preparing the payment receipt and being aware that Smith would potentially "do a deal" on the commission, the decision says.
"Mr Black and Mr Wong did not actually receive any money from Mr Smith so the extortion was threatened rather than actual," the decision says.
"Mr Wong's evidence was that he did not see anything wrong with making it clear that there was to be a complaint concerning the conduct of Mr Smith but that if money/compensation was paid there would be no complaint. He likened it to settling a civil claim."
Speaking to the Herald, Wong, who is now retired, rejected the tribunal findings but said he did not have the money to appeal.
"I'm not doing real estate and I don't care what people think of me."
Smith said the saga had cost four years of his life.
"I tried everything to stop them. They just charged ahead."
After the complaint against him was dismissed, Smith said he was then compelled to lodge a formal complaint about the men under the industry's professional code, further dragging out the proceedings.
