Imagine a group of criminals organising real estate agents, dummy owners, contractors, managers, lawyers, security staff and more to take control of strata corporations, raise money from owners, sign large contracts, run sham legal cases and sell out before too many people notice - and along the way make millions of dollars.
The 14 people who recently pleaded guilty revealed how between 2003 and 2009 they undertook a large scale strata fraud operation doing things like -
- bribing managers and security staff to rig strata corporation elections
- vote swapping on ballots for important decisions
- appointing disbarred lawyers as strata managers
- suing strata corporations for defamation when accused of corrupt behaviour
- instructing 'friendly' lawyers to act for the strata corporations and settle cases in their favour
- appointing 'related' construction companies to do major works at inflated prices
- taking defect settlement payment money for themselves
Read more about this amazing strata tales in this article from the Las Vegas Review-Journal.
Francesco ...
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I have come to the conclusion that the Main Problem with strata in NSW is the Regulators.
ReplyDeleteNSW Fair Trading not only administers the Strata Schemes Management Act for the NSW Parliament but it also issues the licenses for strata agents, real estate agents, builders etc. It should be a very simple exercise NOT to grant a licence to an agent or builder upon renewal if that agent or builder has not performed satisfactorily. Especially in the case of a builder who has proceeded to become bankrupt to avoid legal responsibilities.
I have been told by a senior investigator of the Department that NSW Fair Trading needs unequivocal evidence before it will take anyone to court in case it is challenged. However I am sure that if the investigators actually investigated complaints and took the first 3 offenders to the courts then there would not be a queue waiting to be prosecuted next.
I have great issue with the Regulators and you might like to visit www.strataunitsydney.com
to see just how the Minister for Fair Trading and his Department actually deals with Regulations and enforcement.
Interestingly I first came across your name when I was at the CTTT registry and having difficulties with a staff member and another customer present was so disgusted at the performance of the CTTT staffer that she subsequently identified herself as a solicitor and suggested that if I was having trouble to get in touch with your firm as she thought it was the best in Sydney for strata.