AN administrator has been appointed to a high-profile Main Beach real estate agency after its licensee was charged with 26 offences by the Office of Fair Trading in an alleged fraud worth up to $500,000.

Wilson Allen Estate Agents was placed under external administration on Monday after Jeffrey Dean Allen surrendered his licence and was hit with 26 breaches of the Property Agent and Motor Dealers Act. He will appear in Southport Magistrates' Court on October 7 for a mention of the charges, allegedly committed between July 19, 2010 and February 7, 2011.

Sources have indicated the charges relate to the alleged premature use of deposits in the company's trust accounts. A spokeswoman for the Office of Fair Trading said the matter was still under investigation and no further comment would be made at this stage.

Administrator Terry Rose, from SV Partners, said the situation arose for several reasons. "Cashflow precipitated the appointment and there was also an alleged fraud committed by one of the directors which is being investigated," he said. "As a result of that alleged fraud, the Office of Fair Trading said the company had to do several things, one of which was make sure the director was no longer involved."

Mr Rose said the total amount of the alleged fraud was still being determined but said it was in the vicinity of $500,000. "That is the magnitude being looked at," he said. "A receiver has been appointed by the Office of Fair Trading and I believe they are trying to reconcile the alleged fraud in relation to trust accounts. "But (the business) is continuing to trade and we are working on a rescue package."

In a statement, Wilson Allen Estate Agents director Bruce Wilson said he was determined to continue operations at Main Beach. He said legal advice and the ongoing investigation prevented him from commenting on the departure of Mr Allen. "My main priority is to ensure that we are doing everything possible to help our many valued clients," Mr Wilson said. "We will be taking all reasonable steps to ensure that they receive the best possible service and attention. "I have been a strong part of the Main Beach real estate scene for many years and I expect I will be for the foreseeable future."

Mr Allen told the Bulletin he was co-operating with the Office of Fair Trading investigation but declined to comment further on legal advice.

Police are not investigating the allegations.