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| From: | SP52948 owner |
|---|---|
| To: | Heath Crosbie Waratah Strata Management |
| CC: | Robert Crosbie Waratah Strata Management |
| Subject: | SUMMARY AND INQUIRY - SP52948 repayments to insurance company for legal costs of Solicitor Adrian Mueller Policy QUSS042715 - BCB Ref 94537 |
| Date: | 24/5/23, 20:18 |
Good evening,
Tomorrow is alleged committee meeting of strata plan SP52948. Like all other meetings since 2017, it fails to comply with requirements of Strata Schemes Management Act 2015 (SSMA), Schedule 2, Section 4 (1) and (2), and section 7, and Interpretation Act 1987 (NSW).
Agenda was not sent to Lot 158 and could not have reached this owner or any other owner and tenant who had requested deliveries by post.
Please confirm if all repayments to insurance company are now completed. According to today's report (attachment "SP52948-Income-and-Expenditure-Report-1Sep2022-to-24May2023.pdf"), in this financial year insurance company was paid back $15,200.15 (GST excl), and including FY 2022 total amounts to $16,774.15 (GST excl), which is well below $19,758.14 (GST excl) AIG paid to SP52948 on 25 March 2022. At the same time, you collected $20,000.00 from Lot 158 (GST exclusive, as it does not apply to Lot 158).
Other most pressing issues are:
Negative trends in Admin and 10-Year Capital Works Funds,
negligence of common property (separate email abut current risks
and request to notify insurance company about them will be
submitted to Waratah Strata Management).
Some of drastic examples:
SP52948 Balance Status on 26 October 2022, Admin Fund had negative balance of $203,914.85 (hidden from owners by Waratah Strata Management)
SP52948 Balance Status on 30 April 2023, Admin Fund had negative balance of $$170,670.75 (hidden from owners by Waratah Strata Management)
SP52948 Balance Status on 24 May 2023, Admin Fund has negative
balance of $13,615.50 (three weeks after collection of quarterly
levies - hidden from owners)
Attachments:
SP52948-effects-of-Waratah-Strata-Management-on-Balance-Sheet-from-31Jan2017-to-30Apr2023.pdf
SP52948-first-time-in-history-Admin-Fund-continuous-negative-balances-for-two-FY-quarters-Apr2023.png
SP52948-graph-of-Admin-Fund-negative-balances-from-31Jan2017-to-30Apr2023.png
SP52948-spreadsheet-of-insurance-premium-changes-1997-to-11Oct2022.png
SUMMARY-Another-discrimination-of-owners-in-SP52948-Non-compliant-Extraordinary-General-Meeting-on-27Apr2023.pdf
1) On 16 October 2020, Waratah Strata Management staff Mr. Robert Crosbie sent a short response to BCB staff Mr. Samuel Lawrence with the following contents:
I will wait until the fee proposal for Muellers is formally
accepted at the AGM next week before fully responding, however
the earliest date we were officially aware of this claim was the
date the NCAT application was lodged & notified to us. There
have been ongoing disputes with this owner for years, with
numerous threats that applications would be lodged. These have
never been taken seriously until the NCAT notification was
received.
2) On 7 February 2022, BCB staff member Mr. Samuel Lawrence notified Waratah Strata Management Mr. Robert Crosbie about their letter to AIG, who in the response did not agree to recovery based on recently supplied information. From AIG perspective, it did not make sense to spend $14,000.00 (and probably more if the strata plan intended to commence bankruptcy proceedings) to try to recover $15,000.00 - $20,000.00. AIG noted that the bill for legal costs was $25,157.14 which already exceeded the $25,000.00 limit set by AIG.
At that point, AIG requested all Solicitor's invoices for their
consideration.
3) On 4 March 2022, Waratah Strata Management staff Mr. Robert Crosbie was notified by BCB staff Mr. Samuel Lawrence about Solicitor Adrian Mueller's invoices in amount of $22.833.95, where AIG was not willing to pay GST, and also deducted $181.50 from invoice 103514 (this cost related to the recovery costs which AIG did not consent to).
4) On 5 March 2022, Solicitor Adrian Mueller sent email to Waratah Strata Management, which Mr. Robert Crosbie forwarded to BCB staff Mr. Samuel Lawrence on 8 March 2022, asking that AIG review their decision on the legal fee hourly rate and justification to use it in their assessment.
4) On 25 March 2022, Waratah Strata Management notified members of the strata committee that they received funds from the insurance claim. Ms. Heath Crosbie also clearly stated that if legal costs were recovered from Lot 158, Waratah Strata Management would need to "advise the insurance company and likely refund a portion of the insurance claim".
It is very important to emphasize that Waratah Strata Management:
5) On 25 March 2022 Waratah Strata Management listed revenue from insurance claims for alleged legal costs of Solicitor Adria Mueller in Income & Expenditure Report in amount of $19,758.14 (GST exclusive).
This information was not disclosed to owners, Office of Legal
Services Commissioner, or Supreme Court.
6) Based on falsified statements by Solicitor Adrian Mueller and evidence he failed to disclose, Supreme Court Costs Assessor forced Lot 158 to repay strata plan SP52948 amount of $23,744.72 (GST exclusive) as reimbursement for Solicitor's costs.
7) On 21 September 2022, insurance premiums increased by significant amount of 49.33% (from $108,193.26 in 2021 to $161,569.59 in 2022 - all GST inclusive), without disclosure to owners, while even as late as of 3 October 2022 Income & expenditure Report still did not list any payments for insurance policy.
Waratah Strata Management did not disclose to owners that they delayed additional payments for insurance policy dated 8 August 2022 in amount of $1,617.37, as shown in reminder sent on 19 September 2022. This payment should have been included in FY 2022 accounting data (financial year ending on 31 August 2022).
8) Based on Income & Expenditure Reports, in accounting code 169400 (Maint Bldg--Insurance Repairs &/or Excess), as of 24 May 2023, insurance company was reimbursed for alleged legal costs of Solicitor Adrian Mueller in amount of:
$1,574.00 (GST exclusive)
$15,200.15 (GST exclusive)
... amounting to $16,774.15 (GST exclusive)
9) Lot 158 paid $20,000.00 (GST exclusive, as it does not apply) to strata plan SP52948 so far. Attachment "SP52948-insurance-reimbursements-and-blackmail-payments-for-alleged-legal-costs-of-Solicitor-Adrian-Mueller-2022-and-2023.png".
10) First payment in amount of $5.000.00 was on 2 July 2022. Attachment "Owner-payment-to-SP52948-for-Solicitor-Adrian-Mueller-blackmail-and-fraudulent-activities-in-NCAT-case-SC-20-33352-2Jul2022.png".
That was listed in SP52948 accounting data until code 144000 (Miscellaneous Income--Admin) until around 4 August 2022. Attachment "SP52948-first-blackmail-insurance-payment-in-amount-of-5000-dollars-4Aug2022.webp".
Around 8 August 2022, this payment disappeared. Attachment "SP52948-first-blackmail-insurance-payment-in-amount-of-5000-dollars-disappeared-8Aug2022.webp".
11) Second payment in amount of $5.000.00 was on 27 September 2022. Attachment "Owner-payment-to-SP52948-for-Solicitor-Adrian-Mueller-blackmail-and-fraudulent-activities-in-NCAT-case-SC-20-33352-27Sep2022.png".
12) Third payment in amount of $5.000.00 was on 3 January 2022. Attachment "Owner-payment-to-SP52948-for-Solicitor-Adrian-Mueller-blackmail-and-fraudulent-activities-in-NCAT-case-SC-20-33352-3Jan2023.png".
13) Fourth payment in amount of $5.000.00 was on 3 April 2022. Attachment "Owner-payment-to-SP52948-for-Solicitor-Adrian-Mueller-blackmail-and-fraudulent-activities-in-NCAT-case-SC-20-33352-3Apr2023.png".
14) So far, Solicitor Adrian Mueller and Waratah Strata
Management actively prevent Lot 158 from access to strata
documents and even try to prevent other actions (attachment
"SP52948-Solicitor-Adrian-Mueller-letter-27Jun2022.pdf").
The Uniform Law defines a client as including “a person to whom or from whom legal services are provided.” There is also a term in the Uniform Law for a person who is a “third-party payer”. These persons are not the client but have an obligation to pay all or part of the legal costs for the legal services provided to the client. In respect of client identification and payment of fees, an “associated third party payer” is a person who is under a liability to pay the law practice the fees on behalf of the client. Such a person must have legal rights and obligations disclosed to them as if they were the client.
15) For the second time in last three years, Economos completed
alleged financial audits in non-compliance with the laws.
Audit requirements are prescribed by the Strata Schemes Management Act and Regulation – large schemes and those with a budget exceeding $250k (budget defined under regulations). STRATA SCHEMES MANAGEMENT ACT 2015 – SECT 95 and STRATA SCHEMES MANAGEMENT REGULATION 2016 – REG 21.
Very obvious discrepancies and concerns for audited accounts for
the previous years were collected and given to Economos (and a
reply never received - part of opened investigation against the
auditors). Auditor's report for FY 2020 was signed on 3 November
2020, 12 days AFTER the general meeting.
43 days after the general meeting, on 9 December 2022, Auditor's
report for FY 2022 was finally made available.
16) SP52948 is now recorded as involved in two insurance frauds.
More drastic examples of legal costs:
On 4 July 2012, owners corporation had no funds to pay $14,056.90
which was approved by Mr. Paul Banoob for creditor code 69633, so
BCS Strata Management secretly ordered injection of $50,000.00
from an MBL account (several days later, at alleged committee
meeting in Lot 181 unit, who was unfinancial at the time, approved
engagement of Solicitor Adrian Mueller without owners corporation
knowledge - that meeting was later found out to be completely
illegal and to this day agenda and minutes of the meeting do not
exist in strata files)
BCS Strata Management, in full co-operation with committee members
and Solicitor Adrian Mueller, made four insurance claims for
non-existent "Defence of Lot 3" whilst Solicitor Adrian Mueller
illegally represented SP52948 in CTTT cases SCS 12/32675 and
12/50460:
SP52948-Lot-3-Insurance-Claim-1-31Aug2012
SP52948-Lot-3-Insurance-Claim-2-7Dec2012
SP52948-Lot-3-Insurance-Claim-3-2May2013
SP52948-Lot-3-Insurance-Claim-4-4Jun2013
Four years later, CHU Insurance forced owners corporation to repay
$8,800.00.
Regards,
