Investigative Journalism and Learning Hub - Fair Trading NSW Ignored Report of Solicitor Adrian Mueller's Costs Creeping Up Towards $90,000.00 Without SP52948 Owners Knowledge or Approval on 29 June 2019

From:	SP52948 owner
To:	Robert Crosbie, Frank Talarridi
Subject:	UPDATES: Undisclosed Fair Trading NSW case 9761719 - costs for Solicitor Adrian Mueller possibly creeping up towards $90,000.00 without owners knowledge or approval and high risk of strata complex running out of money on 29Jun2019
Date:	29/6/19, 7:26 pm

Hi,

For strata records - all attachments are unredacted copies of the strata files that must be kept for seven years and made available to all who owners who pay prescribed fees.

Fair Trading NSW investigation of Waratah Strata Management

Fair Trading NSW officially notified Waratah Strata Management about audit in file 9761719 on 13 May 2019. It was initiated through referral by the Member of Parliament and Minister for Innovation NSW Matthew Kean asked Fair Trading NSW to consider the concerns about strata managers on 10 October 2017. Attachment "SP52948-Fair-Trading-NSW-conducting-audit-of-strata-records-13May2019.webp"). Waratah Strata Management failed to inform owners corporation about it.

Initial responses from Waratah Strata Management provide insight of their efforts to influence Fair Trading NSW to NOT investigate them. Attachments "SP52948-extract-from-email-by-Waratah-Strata-Management-to-Fair-Trading-NSW-case-9761719-part-1-17May2019.webp" and "SP52948-extract-from-email-by-Waratah-Strata-Management-to-Fair-Trading-NSW-case-9761719-part-2-17May2019.webp").

An example of how Waratah Strata Management wanted to influence Ryde City Council is displayed in attachment "SP52948-Waratah-Strata-Management-plan-how-to-influence-Ryde-Council-staff-to-rezone-public-land-21Apr2017.webp". They lost the case and were forced to close the gate allowing illegal use of public land.

Same effort was shown by Waratah Strata Management to Police at Eastwood, when they failed to provide requested files, but tried to coerce the Police to drop the investigations of alleged insurance fraud and false statements in Statutory Declaration to CTTT/District Court in 2013. Waratah Strata Management was warned that false statements were a very serious offence, which they ignored. Lying in a Statutory Declaration is punishable by up to five years in prison, according to the NSW Oaths Act. Former judge Marcus Einfeld served two years in prison for knowingly making a false statement under oath and for attempting to pervert the course of justice. The case stemmed from the improbable catalyst of a false statutory declaration over a $77 speeding fine.

Waratah Strata Management mentioned word "democracy" in their attempt to persuade Fair Trading NSW "not to waste time".

Attachment "SP52948-EC-member-Stan-Pogorelsky-instructions-to-ignore-Lot-158-complaints-3Apr3017.webp" displays an example of alleged "democracy" in action.

Attachment "SP52948-EC-member-Betty-Saulits-using-democracy-phrase-for-CTTT-submission-14Feb2011.webp" shows another example of very loose interpretation of democracy.

Another example of "democracy" is shown in attempt by EC member from Lot 181, Mr. Stan Pogorelsky, who attempted to prevent an owner giving evidence in alleged insurance fraud (attachment "SP52948-EC-member-Lot-181-attempting-to-prevent-insurance-company-investigate-alleged-fraud-3Apr2017.webp").

In May 2013, significant group of owners expressed absolute wish NOT to engage Solicitor Adrian Mueller (evidence is available upon request), but BCS Strata Management and EC members ignored it, although three members of the EC were not financial due to receiving undisclosed benefits or not paying prescribed levies.

Attached is the extract from email on 20 May 2019 to Fair Trading NSW "SP52948-Waratah-STrata-management-trying-to-prevent-owner-from-access-to-Strata-Roll-20May2019.webp" where EC members and the strata manager tried to prevent Lot 158 from accessing the Strata Roll, which is illegal in accordance with SSMA 2015 (Waratah Strata Management had the Solicitor's advice about it but decided to ignore it).

Attachment "SP52948-Waratah-Strata-Management-claiming-to-Fair-Trading-NSW-that-access-to-files-was-never-denied-17May2019.webp".

Strata document search at Waratah Strata Management on 31 May 2019 proved, beyond any doubt, that most of strata files for the last seven years (statutory requirement by law) were missing (attachment "SP52948-outcome-of-document-search-at-Waratah-Strata-Management-by-Lot-158-and-deliberate-refusal-by-strata-manager-to-provide-access-to-files-on-31May2019.pdf"). Follow-up request was sent to Waratah Strata Management on 10 June 2019 and a response never received (attachment "20190610-FOLLOW-UP REQUEST SP52948 Delivery of missing files in document search by Lot 158.pdf").

Only eight entries were found in a cheque book for the seven-year period, as screenshot on 31 May 2019 confirms it (attachment "SP52948-only-eight-entries-found-in-cheque-book-for-seven-year-period-31May2019.webp").

Lot 158 requested Waratah Strata Management to provide evidence of files being forwarded to Fair Trading NSW by Tuesday afternoon, 25 June 2019.

Lot 158 requested Waratah Strata Management to provide evidence of request to obtain strata files from Solicitor Adrian Mueller through the Office of Legal Services Commissioner by Tuesday afternoon, 25 June 2019.

Lost USB with strata files

Waratah Strata Management was notified in early May 2019 that Lot 158 had four copies of the USB which the Police and Waratah Strata Management allegedly lost in mid-2018. Waratah Strata Management failed to inform the owners corporation about it, failed to keep the backup copy, and failed to report it at all EC meetings and the general meeting in October 2018.

Initially, Lot 158 offered it at the reasonable cost for recovering money they paid for document search but withdrew it when details of Fair Trading NSW case emerged (attachment "20190608-SP52948 Lot 158 temporarily withdraws offer for providing USB and strata files to Waratah Strata Management on 31May2019.pdf"). The USB, however, is available to the enforcement agencies.

Waratah Strata Management failed to inform owners corporation that Lot 158 offered to provide forensic auditors (reputable Certified Practising Accountants (CPA)) to SP52048 for free.

Waratah Strata Management attempting to cause high costs to owners corporation and risk huge litigation

Lot 158 attempted in every possible way to mediate, talk , and reason with BCS Strata Management (prior to 1 February 2017), Waratah Strata Management, and EC members. To no avail. Some examples of patience by owners of Lot 158 are in attachment "20190602-SUMMARY Evidence of Lot 158 trying to avoid bankruptcy of SP52948 through patience and persistence.pdf".

On 18 June 2019, Waratah Strata Management was requested to stop wasting owners corporation funds on legal advice that had no chance of success (attachment "20190618-WITHOUT PREJUDICE_ Request to stop wasting strata funds on legal expenses that cannot succeed - 18Jun2019.pdf"). Waratah Strata Management failed to inform owners corporation about it and also report the names of the EC members and Waratah Strata Management that are listed as "persons-of-interest" (assessories before, at, or after the events) in the Police investigations.

On 23 of June 2019, Waratah Strata Management, with delegated duties of Treasurer and Secretary of the Executive Committee, was requested to share information with owners, Fair Trading NSW, and Office of the Legal Services Commissioner. The evidence that such request was satisfied by Waratah Strata Management was not received.

Detailed audit of second gas connections and evidence that there was no quorum at AGMs 2016, 2017, and 2018 was provided to Waratah Strata Management and EC members. Latest audit is in attachment "SP52948-audit-second-gas-connections-Jun2019.pdf". Waratah Strata Management declined to share it with owners corporation.

Contract with Liftronic in 2017, worth close to one million dollars when including yearly maintenance fee, was approved without having access to the Liftronic document (evidence collected for Fair Trading NSW). The EC meeting on 30 June 2017 was held without compliance with SSMA 2015 and neither agenda nor minutes were sent to owners. The paper meeting was held at 11:00 hours in the morning, on the same day when the alleged contract was sent via email but Waratah Strata Management could not open it even as late as 10 July 2017. Full details are summarised separately,. The risk of other companies suing owners corporation for unfair and biased tender is extremely high.

Latest contract for electricity supply was secretly negotiated and signed by Waratah Strata Management several days after AGM 2018 in late October, without owners knowledge or a review. The contract expired on 30 September 2018 and was secretly signed and renewed in 2015 two and a half months earlier without owners corporation approval or knowledge by Strata Manager Simon Wicks.

Deed of Settlement with BigAir ISP in 2018 was signed by Waratah Strata Management, with very poor benefits to owners corporation and BEFORE EC had meeting. The Deed was signed before the EC meeting and there was no evidence of emails of majority of VALID EC members approving it on or before 15 June 2018.

There has been no tender for building manager contract since 2014. Contract worth around $300,000.00 per year.

Waratah Strata Management increased own contract by 12.5% three times since 1 January 2017, and against official approval by owners at AGM 2016.

Solicitor Adrian Mueller

Attachment with extract from the Office of Legal Services Commissioner on 1 March 2019 and 19 June 2019 show the willingness to force Solicitor Adrian Mueller to provide access to eight emails for the Police investigations ("Office-of-Legal-Services-Commissioner-offer-to-help-SP52948-and-Police-obtain-files-from-Solicitor-Adrian-Mueller-March-and-June-2019.webp".

On 28 May 2018, Solicitor Adrian Mueller charged owners corporation $350.00 (plus GST) when the Police asked him to provide access to eight emails as part of insurance fraud and false statements in Statutory Declaration investigation. Waratah Strata Management failed to disclose this to owners corporation. Solicitor failed to give those files to the Police at any time during 2018 and up to now.

Just in FY 2018 and FY 2019 (up to early May 2019) Solicitor Adrian Mueller earned $8,050.00 on legal advice that contained high risks to owners corporation.

Waratah Stata Management was asked to comment about four-month delay to pay Solicitor Adrian Mueller in 2017, to avoid listing it in financial report for FY 2017. A reply was never received. Attachment "20190623-SUMMARY Deliberate and premeditated delay by Waratah Strata Management to pay Solicitor Adrian Mueller invoice in 2017.pdf".

Latest Minutes of the EC meeting confirm that yet again, they intend to waste owners corporation funds on legal advice from Solicitor Adrian Mueller, whose costs are now creeping to possibly $90,000.00 so far. Minutes of the latest meeting do not disclose to owners, in any form, details of the Standard Costs Agreement, or the amount chargeable by the Solicitor in the agreement.

Here is an example of how Solicitor Adrian Mueller and Waratah Strata Management dealt with AGM 2017 (in addition to quorum not satisfied at the meeting, the ballot for EC membership was conducted through non-complaint forms - attachment "SP52948-Waratah-Strata-Management-accepting-non-compliant-ballot-papers-example-Lot-181-AGM-2017.webp"). Ballot papers must conform with Strata Schemes Management Regulation 2016 Regulation 10.

Solicitor Adrian Mueller gave Waratah Strata Management direct advice on how to manipulate Lot 158 Motions for AGM 2017 by suggesting and providing template document on 23 August 2017 (attachment "SP52948-Solicitor-Adrian-Mueller-advice-on-23Aug2017-how-to-remove-Motions-by-Lot-158-and-prevent-them-for-AGM2017-by-simply-sending-letter-to-Lot-158-on-the-day-of-agenda-being-sent-in-October-2017-which-would-not-give-enough-time-for-amended-agenda.webp"):

a) Not to provide any reasons for excluding Lot 158 Motions from general meeting,

b) Send the letter to Lot 158 on the date of agenda for AGM 2017 so that no time is given for agenda amendments.

Waratah Strata Management prepared letter rejecting Lot 158 Motions as early as 23 August 2017 (attachment "SP52948-Waratah-Strata-Management-secret-letter-to-exclude-Lot-158-Motions-23Aug2017.webp") but sent it to Lot 158 (with only letterhead change and the date) as late as 10 October 2017 (AGM was scheduled for 24 October 2017).

Waratah Strata Management "pretended" to continue to engage with Lot 158 in regards to AGM Motions (as seen from below email dated 27 September 2017 and the follow-ups till early October 2017), with clear plan to ignore Lot 158 since August 2017.

Solicitor Adrian Mueller was clearly worried about weak Special By-Law he proposed for "Unreasonable Communication" that stands no legal grounds. He charged $2,500.00 (plus GST) for preparing the by-law and reviewing Lot 158 Motions. The "Unreasonable Communication" By-Law does not comply with Section 139(1) of SSMA 2015 (provides that a by-law must not be “harsh, unconscionable or oppressive”). A person entitled to vote on a motion making a by-law may apply to the NSW Civil and Administrative Tribunal (NCAT) for an order invalidating such a by-law. Attachment "SP52948-Solicitor-Adrian-Mueller-worried-about-weak-by-law-prohibiting-unreasonable-communication-10Oct2017.webp".

Audit of non-common property and second gas connections and levies

Multiple attempts were made to enforce proper payments of levies and saving owners corporation funds from maintaining private property. That was completely ignored by Waratah Strata Management. One of them is in attachment "20190616-SUMMARY_ SP52948 Audit of second gas connections and conflicting information by Waratah Strata Management and maintenance staff 16Jun2019.pdf".

The comprehensive listing of second gas connections (based on available evidence) was composed by Lot 158. Attachment "SP52948-audit-second-gas-connections-Jun2019.pdf". Full report of payments, including secret EC meeting in August 2000 (agenda and minutes never sent to owners, and invoice covering two years) will be provided separately.

Redacted strata file with misleading and incorrect information for Lot 181

As part of document search, Lot 158 specifically requested access to Lot 181 self-assessment of their payments for second gas connection, dated 10 June 2015 that Mr. Stan Pogorelsky sent to BCS Strata Management.

A group of owners, including Lots 147 and 181, were approached in private to refute, confirm, or take any appropriate action in regards to their unpaid levies for second gas connections in November 2018. None of them offered evidence to counter Lot 158 investigations. To preserve their privacy, the documents were deemed private and confidential by Lot 158 and yet, Lot 181 sent it to Waratah Strata Management, without consent (attachment "20181126-PRIVATE AND CONFIDENTIAL_ Lot 181 unpaid levies for second gas connection and evidence of defamation.pdf"), breaching the publishing rights and intellectual property rights, and then taking no action to rectify unpaid levies (attachment, as found at Waratah Strata Management on 31 May 2019 "SP52948-Lot-181-disclosed-private-information-without-consent-and-then-took-no-action-to-pay-correct-levies-26Nov2018.webp").

On 31 May 2019, that file was NOT FOUND. Instead, the found file was redacted and certainly modified in 2018 or 2019. Attachment "SP52948-Lot-181-gas-levy-payments-self-assessment-miscalculated-10Jun2015.webp". Full details of why it is not valid will be provided to Fair Trading NSW. But, as a short appetiser, here are some of the facts:

The attached file covers payments up to 2018, which would not be possible if the document was really dated in 2015.
The payments in various years are incorrect.
The payments for years when the levies were not paid did not cover any interest rates.
and so on.

Regards,

On 27/9/17 3:20 pm, Robert Crosbie wrote:

A considerable amount of time and cost has already been spent reviewing your previous list of proposed AGM motions. Please advise whether the attached 83 pages of motions has changed from the previous list. If yes, please highlight the changes made. If a list of the amendments is not provided, only the original list will be dealt with at the AGM.

Regards,

Robert Crosbie

Waratah Strata Management

P.O. Box 125, Eastwood NSW 2122

-----Original Message-----

From: SP52948 owner

Sent: 25 September 2017 8:22 PM

To: Robert Crosbie

Subject: UPDATED SP52948 Motions by Lot 158 for AGM 2017 on 25Sep2017

Hi,

Details of the proposed By-Laws and Motions for the next AGM/EGM were provided several times. This time, with latest updates, properly submitted in accordance with:

STRATA SCHEMES MANAGEMENT ACT 2015 - SCHEDULE 1, Part 2 Section 4

It is duty of the Secretary of the EC to act, as per Section 4(3):

(3) The secretary must give effect to the requirement.

Secretary of the EC can contact me if they have problem to read my document. Otherwise, it is their responsibility to prepare files.

None of the EC members attempted to communicate with me in an orderly manner or in accordance with their duties so far.

I dismiss the efforts to waste my time on this matter without a constructive co-operation.

I again note that EC members should be aware of the following (there is a claim in the Minutes of the recent meeting that five EC members "mastered" the new Strata Act"):

STRATA SCHEMES MANAGEMENT ACT 2015 - SECT 37 It is the duty of each member of a strata committee of an owners corporation to carry out his or her functions for the benefit, so far as practicable, of the owners corporation and with due care and diligence.

Through this email, I also request that Minutes of EC meeting planned for this week be sent to my home address via post within seven days after the event.

Regards,