Two years after an ABC Four Corners report alleged serious misdeeds by strata management giant Netstrata and its CEO Stephen Brell, NSW Fair Trading announced today that the company and Brell are to face criminal charges in the state’s Supreme Court.

The charges include that the Sydney-based company contravened its statutory obligations, didn’t adequately disclose or or manage conflicts of interest, effectively took commissions without disclosing them and, potentially most seriously of them all, provided false or misleading information to Fair Trading.

Under the Fair Trading Act 1987 (NSW), knowingly providing false or misleading information or producing false documents to an investigator carries a maximum penalty of 20 penalty units. With a NSW penalty unit currently valued at $110, this equates to a fine of up to $2,200.

However, according to Armstrong Legal, under the NSW Crimes Act, providing false and misleading information in certain official or investigative circumstances is a very serious criminal offence. A court can impose a maximum penalty of 200 penalty units (currently $22,000), imprisonment for up to two years, or both.

The fact that Fair Trading has issued a statement saying the charges are “criminal” suggest that they may be alleging that information provided during their investigation into Netstrata falls into the latter category.

It should be noted that these are just allegations at this stage and Brell and his company will have a chance to prove their innocence in court.

The Netstrata scandal blew up when ABC TV’s Four Corners The Strata Trap, an investigation into dodgy dealings in the strata management industry aired allegations about Netstrata’s business practices.

Brell then stepped down as President of Strata Community Association (NSW), the strata managers’ professional body. An independent investigator was appointed and in February last year McGrathNicol issued a report commissioned by NSW Fair Trading based on investigations into a sample of 60 strata schemes, about 5 per cent of Netstrata’s clients.

In the 60 sampled schemes, investigators found several potential breaches and Netstrata said it would tighten up its processes but disputed some of the claims. Meanwhile laws have changed to better protect strata schemes and Fair Trading has insisted the investigations into Netstrata were continuing. And now, out of the blue, criminal charges have been laid and the law will take its course.

The following is the unedited text of the Fair Trading press release.

NSW Fair Trading commences prosecution against Netstrata

NSW Fair Trading has commenced criminal proceedings in the Supreme Court of NSW against Network Strata Services Pty Ltd (Netstrata) and its Director and Licensee in Charge Mr Stephen John Brell.

NSW Fair Trading alleges multiple breaches of statutory obligations under the Property and Stock Agents Act 2002 (NSW) in connection with the management of strata schemes in NSW. 

It is alleged Netstrata: 

• contravened statutory obligations applying to strata managing agents; 
• failed to comply with their fiduciary duties owed to owners corporations and lot owners in that they;
  • did not adequately disclose or appropriately manage conflicts of interest, including in relation to related-party service providers; 
  • received profits by way of undisclosed financial benefits and other advantages; 
• provided false or misleading information to NSW Fair Trading.

As charges have now been laid by NSW Fair Trading the matter will now be determined by the Supreme Court of New South Wales. 

The matters are listed before the Supreme Court at Queens Square in Sydney on 27 and 28 July 2026. 

Netstrata is one of the biggest strata companies in NSW, managing around 1000 strata properties across the state. 

Acting NSW Fair Trading Commissioner Andrew Floro said: 

“Strata managing agents play 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.”