| From: |
SP52948 owner |
| To: |
George Venardos info@economos.com.au |
| Subject: |
INFORMATION regarding Strata Plan SP52948 audit on 18 October 2018 |
| Date: |
31/8/19, 5:38 pm |
Hi,
Firstly, apologies for the unsolicited email.
It has been generated in earnest effort to find the details of
suspected financial mismanagement in strata plan SP52948. These are
very serious allegations. We hope Economos can shed some light,
namely, if they had knowledge of strata file losses in 2018 and
2019 (brief details below) and if all strata files (including
invoices) were made available to your office before AGM 2018 (and
2017 if Economos was involved in that year too).
Economos is encouraged to respond in good faith.
All statements listed below are backed by indisputable evidence.
a) Based on documentary evidence, Economos was engaged to
provide audit report for SP52948 through Waratah Strata Management
on 18 October 2018.
On the same day, Annual General Meeting was held, without
disclosure of the audit to any of 218 owners in the
complex.
The audit report for 2017 was never disclosed to owners and
not made available, so it is still an open issue who conducted
it.
b) Police initiated investigation about what was alleged to be
multiple cases of insurance fraud and false statements in Statutory
Declaration to Consumer, Trader, and Tenancy Tribunal (CTTT, now
NCAT) and District Court in early 2018. Police Event
E6580XXXX.
Waratah Strata Management, upon Police request, provided them
with the USB key with strata files in March 2018. The USB key had
originally been handed over by BCS Strata Management when their
contract was terminated on 1 February 2017.
The USB key did not contain any of the crucial files (eight
emails listed in Statutory Declaration to CTTT and District Court
in 2013/2014) and the Police could not locate them during the
initial search.
Waratah Strata Management failed to warn the Police that they
had been given the ONLY copy of the USB key. In other words,
Waratah Strata Management allegedly never made a copy of it or
protected owners corporation financial and other files.
Police somehow "misplaced the USB key" and that makes SP52948
liable for loss of strata records for any period before 1 February
2017.
This information was withheld from owners until 12 March 2019.
In period between April 2018 to 12 March 2019 (almost 11 months),
Waratah Strata Management did not provide information to owners that the lost
USB key allegedly contained all strata files (including financials,
emails, legal cases, insurance claims, and invoices) for period up
to 1 February 2017.
Lack of proper backups caused loss of all strata files for any period prior to 1
February 2017.
c) At Annual General Meeting in October 2018, Waratah Strata
Management was requested to provide the Police with the requested
files and also seek those files from Solicitor Adrian
Mueller.
Waratah Strata Management removed those Motions
from voting, effectively disallowing owners from taking
action.
d) On 1 February 2019, Waratah Strata Management was allegedly
attacked by ransomware and lost most of SP52948 files (again). This
information was only reported to owners on 12 March 2019.
There were three versions of what was lost (one given to
owners, one to Fair Trading NSW, and one to a single
owner).
e) On 31 May 2019, an owner conducted document search at
Waratah Strata Management and found MOST of strata files missing,
including almost all invoices and financials. Some of the missing
files:
- Electronic documents were almost non-existent and cover only
partially period January to May 2019.
- Hard copies of strata files did not have most of files for the
last seven years. Of special importance were:
- Missing all cash book receipts for financials years between
2012 and 2019,
- Missing balance sheet updated to 31 May 2019,
- Missing auditor’s report for FY 2017,
- Missing almost all invoices for financial years between 2012
and 2019,
- Missing most of insurance claims for financial years between
2012 and 2019,
- Missing cash book payments for all financial years between 2012
and 2019, with exception of FY 2018 and part of FY 2019 (period
between 1 September 2018 and 2 May 2019),
- Missing most of legal files: and Fair Trading/CTTT/District
Court for years between 2012 and 2019,
- Missing most of emails for years between 2012 and
2019,
- Missing most of documents listed in request sent before
the document search,
- Missing current Strata Roll,
- Missing audit of items that are not common property any
longer,
- Missing full audit of owners with second gas
connections,
- Missing tenders for strata management, building manager,
elevator maintenance and upgrades, and electricity supply
renewal,
- Missing tax returns (only two files found),
- Only eight entries were found in the cheque book for last seven
years and older cheque books were not found.
- and much more.
In short, MOST of strata files were missing and
repeated requests ignored.
f) In May 2019, Fair Trading NSW finally opened investigation
about Waratah Strata Management. This information was withheld from
owners.
g) On 14 July 2019, Waratah Strata Management was asked direct
questions about data loss and the risks.
They were approached to provide details if ATO was notified
about data losses in 2018 and 2019, exact dates when data losses
happened, proof if privacy data loses were reported, and so
on.
They declined to respond.
h) On 11 August 2019, Waratah Strata Management was asked to
disclose information if EC members had been notified about two
events for loss of SP52948 strata files in a timely
manner.
This time more questions were asked, including, if Economos
was notifed about lost USB key at any time before audit in October
2018 or later, if insurance companies were notified in 2018
and 2019, and much more.
They declined to respond.
Regards,