A Melbourne real estate agent defrauded clients of almost $6.5 million, which was spent on jewellery and other items, a court has heard.

Joseph Ngo, 36, pleaded guilty to 48 charges of diverting sales and rental deposits for his own use from January 2015 until April 2017.

The Melbourne County Court heard the former Glen Waverley agent spent money at various stores, including high-end jewellery shop Tiffany & Co, where he paid $110,000 for jewellery.

Ngo and his wife Judy Nguyen ran six LJ Hooker franchises in Melbourne, including branches in Doncaster and Box Hill, when they suddenly closed their doors on April 19, 2016.

The court heard the investigation was sparked in April last year, when a Consumer Affairs Victoria officer discovered documentation that revealed a trust account for the branches’ real estate sales was overdrawn by $160,000.

After the branches ceased trading, the Victorian Minister for Consumer Affairs froze the accounts and sent in external managers, who found all IT equipment had been removed from the six offices, the court was told.

Ngo had also engaged employees to purchase properties listed with his agencies in order to shift money around accounts to cover up losses, the court heard.

Robyn Harper, for the Department of Public Prosecutions, told Judge Michael Bourke of the “subterfuge” used to hide suspect transactions.

Any action by employees “must be disclosed to the vendor and it wasn’t”, she said.

Ngo’s wife, Judy Nguyen, who was also his business partner, pleaded not guilty in the Melbourne Magistrates’ Court.

LJ Hooker cancelled the six franchise licenses held by the couple last year.

The plea hearing continues.