A SHENZHEN property agency owner has been accused of misappropriating more than 600,000 yuan (US$80,000) in deposits paid by clients.

This is the second scandal involving local real-estate brokers this month after the boss of a well-known property firm vanished with 40 million yuan early this month.

Cai Yong, the owner of Shengye Real Estate, who was accompanied by creditors to police Thursday, had allegedly misappropriated their money to run a restaurant, the Shenzhen Evening News reported Sunday.

A woman identified by her surname Xie said Cai owed her 330,000 yuan.

Xie, who owned an apartment in Longgang District, said she was in urgent need of money in October after one of her family members fell ill and went to a bank for help.

Three days later, she received a call from Cai, who offered to help her obtain a 330,000-yuan bank loan.

Xie, who doesn't hold Shenzhen hukou, paid Cai 10,000 yuan in commission and mortgaged her property to secure the bank loan.

Non-hukou residents in Shenzhen need a hukou holder as a guarantor before they can obtain a bank loan.

Xie said she was told by Cai the bank would not grant the loan until Nov. 7. However, she accidentally discovered the bank had begun to deduct loan repayments from her account.

"By then Cai was forced to tell me the bank had granted me the loan Sept. 30," Xie said. "He said he had used my money to run his restaurant."

Another Hong Kong resident, Liu Zhigang, said he sold his home for 960,000 yuan in June through the property agency, which had so far paid him only some 600,000 yuan.

Cai refused to comment.

One of Cai's friends identified as Wu said Cai also borrowed money from him, but he believed Cai was able to pay creditors back.

"He owns at least four properties," Wu said. "As far as I know, he is ready to sell his restaurant."

Police advised creditors to resort to legal means to settle their disputes with Cai.

On Nov. 13, Jiang Fei, boss of the 2,000-employee Zhongtian Real Estate, went missing with 40 million yuan, making a stir in the real estate market, which spiralled downward after the government took action to cool the market.

(Li Jing)