Former real estate agent Richard Michael Hayden has pleaded guilty to embezzling almost $770,000 from his family business, Hayden Real Estate, to fund a “good end to life” for his wife, who died in January 2019 from inoperable breast cancer. Hayden’s actions left insufficient funds for the company to pay clients’ deposits for the sale of their homes, with 76 clients making claims to the Victorian Property Fund after failing to receive their deposit payments. County Court Judge Marcus Dempsey has indicated that a prison sentence is likely, despite acknowledging that Hayden had been a trustworthy and law-abiding real estate agent for 20 years prior.
According to an article in an article published on ABC News, a former real estate agent in Ballarat, Richard Michael Hayden, is likely to receive a prison sentence after pleading guilty to embezzling business money. Hayden used the stolen money to fund a good end to life for his wife, who was dying of cancer.
Hayden, who was the sole director of Hayden Real Estate, withdrew almost $770,000 from the business to personal accounts over 98 transactions in 2018 and 2019. This left insufficient funds for the company to pay clients’ deposits for the sale of their homes. As a result, seventy-six clients made claims to the Victorian Property Fund (VPF) after failing to receive their deposit payments from Hayden Real Estate in 2018 and 2019.
During his plea hearing at the County Court in Melbourne, Hayden pleaded guilty to two rolled-up charges of allowing deficiencies in real estate trust accounts and one charge of wrongful conversion of business money to personal accounts. The court heard that Hayden used the fraudulently obtained business money to fund luxury holidays, entertainment, clothing, and medical costs, much of which was for his wife before she died in January 2019 of inoperable breast cancer.
Prosecutor Ruth Hamnett described Hayden’s actions as a “spectacular lapse of judgement” during a period of intense depression and stress. However, she emphasized that dozens of victims suffered as a result of his actions, calling it a “gross breach of trust.”
Despite acknowledging that Hayden had been a trustworthy and law-abiding real estate agent for 20 years prior, County Court Judge Marcus Dempsey indicated that a prison sentence is likely. He stated that it was clear the offending was linked to Hayden’s highly depressed and stressed state amid the “bleak” circumstances surrounding his wife’s illness and death.
“It is very hard to ignore the fact the only time your client deviates from a lawful and decent path of life culminates with the terminal illness and death of his wife,” Judge Dempsey said.
Hayden’s defence barrister, Ian Hill KC, argued that his client’s actions were motivated by his desire to provide a good end to life for his wife. However, he acknowledged that Hayden’s actions were unlawful and that he had let down his clients and colleagues.
Hayden Real Estate, a long-time family business that had operated in Ballarat for 90 years, closed in 2019. The case highlights the importance of trust and integrity in the real estate industry and the severe consequences that can result from breaching that trust.