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NSW strata giant faces criminal proceedings over alleged undisclosed benefits
One of NSW’s biggest strata management companies has been taken to court over its alleged failure to properly disclose conflicts of interest and financial benefits.
NSW Fair Trading has commenced criminal proceedings against a NSW strata management company and its director over alleged fiduciary duty failures.
Network Strata Services Pty Ltd, trading as Netstrata, and its director and licensee in charge, Stephen John Brell, will face proceedings at the Supreme Court of NSW later this month.
Netstrata is one of the biggest strata NSW strata companies, managing around 1,000 strata properties across the state.
NSW Fair Trading alleges multiple alleged breaches of statutory obligations under the Property and Stock Agents Act 2002 (NSW) in connection with the management of strata schemes.
The regulator alleged Netstrata failed to adequately disclose or appropriately manage conflicts of interest, including in relation to related-party service providers.
It is also alleged that the firm received profits by way of undisclosed financial benefits and other advantages, while also providing false or misleading information to NSW Fair Trading.
The matter will now be determined by the Supreme Court, with hearings listed for 27 and 28 July.
Under the Strata Schemes Management Act 2015, strata managing agents are required to disclose commissions, relationships and financial interests to owners corporations.
Acting NSW Fair Trading commissioner, Andrew Floro, said strata managing agents played a critical role in the governance and financial management of strata schemes across NSW.
“This prosecution aims to hold Netstrata and its director and licensee in charge to account should the offences be established,” he said.
The news came after it emerged that the state’s strata task force handed out more than $125,000 in fines in its first year of operation.
The Strata and Property Taskforce has issued almost 80 fines since it began in early 2025, in the government’s bid to crack down on misconduct, lift professional standards, and support better decision-making for residents.
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