Apartment owners jubilant as dodgy strata manager banned for life

A controversial strata manager who hired six burly security guards to prevent some apartment owners from attending their own AGM has become the first to be struck off for life.

Michael Lee, general manager of strata company Result Strata, has also been hit with the maximum fine allowable of $11,000 in addition to his disqualification from holding a licence by NSW Fair Trading. His company also had its licence cancelled and was fined the maximum $22,000.

Strata manager Michael Lee has been disqualified and given the maximum possible fine. Credit: Rhett Wyman

After a long-running investigation into their activities, Fair Trading officials found that, under Lee’s direction, the company had failed to disclose conflicts of interest, consistently breached rules of conduct, charged fees for services not rendered, and failed to ensure owners’ properties complied with critical fire and safety obligations.

In addition, it hadn’t provided information to owners when required, acted contrary to instructions given at general meetings, and failed to make sure a building had adequate insurance cover. As a result, he had become what they believed to be the first strata manager banned for life.

When contacted, Michael Lee said he was a victim of Fair Trading.

“I have contacted the prime minister about this and all the ministers and all MPs, and we will tell the Supreme Court that this is persecution, and they are acting only on the basis of allegations and no proof at all. They never gave me the chance to provide my side of the story and never tested the evidence,” he said.

“Strata owners are the most difficult people in Australia. The strata industry is the most stressful one on earth and being a strata manager is the most stressful job on earth.

“And the new strata laws are giving these bad people in government even more power. They can come after anyone, they might come for you next. It is chilling. I have been denied natural justice.”

Fair Trading commissioner Natasha Mann said in a statement to this masthead: “NSW Fair Trading is committed to strong, visible enforcement to protect consumers and this action sends a clear message that poor conduct in the property sector will not be tolerated.

“Through our dedicated Strata and Property Services Taskforce and ongoing reforms, standards and protections are being lifted and strengthened for the more than 1.2 million people who live in strata communities.”

One jubilant apartment owner who had campaigned against Lee’s reign over his building in Sutherland said he was thrilled that the government had acted so decisively to free so many residents from the “diabolical clutches of such a terrible player.”

Adam Denyer, from the building Dwell, who is one of the apartment owners from several buildings across Sydney who’d come together to protest about their homes being managed by Lee and Result Strata, said he was incredibly relieved.

“We brought together a massive brief of evidence against him which formed a large part of the Fair Trading investigation,” he said. “It’s a breath of fresh air that they’ve removed such a recalcitrant foe from power over so many people and freed them from the diabolical clutches of such a terrible player.

Adam Denyer, Peter Bishenden, and Sebastian Mignacca outside their apartment building, which was managed by Lee and Result Strata.Credit: Steven Siewert

“The devastation he wrought, particularly over buildings where he was embedded for longer, will still be felt for a long time yet, however. Even though our building was less than two years old, we received a huge special levy of $110,000 just before Christmas as he’d deliberately under-costed strata levies. But his disqualification is a massive step in the right direction and we’re hoping the NSW Police will now investigate.”

Lee first came to public attention when ABC TV’s Four Corners program showed a rowdy AGM of another building at which he’d hired security guards – using owners’ funds – to control the meeting and held a “secret ballot” for committee elections, which he then declared himself to be the winner of.

Robert Anderson, president of the Strata Community Association (NSW), the peak body for strata managers in the state, said he had been “appalled” to witness his behaviour that night.

“I was shocked to see him, and appalled,” said Anderson, who’s been working in strata for 31 years. “I didn’t believe anyone could behave in such a way, and do the kind of things he was doing. It was terrible.

“In any industry, you might have some bad players, and something like this leaves everyone tarred. But the fact that Fair Trading has acted so decisively is a very good thing and allows everyone to have more confidence in the industry. He is the exception and while we’ve had some managers before banned for five years or 10 years, never for life before.”

The cancellation follows earlier suspensions of the licences in January and March.

Acting Strata & Property Services Commissioner Angus Abadee said action will always be taken to remove operators who are not fit and proper to hold a licence.

“This outcome reflects the importance of strong regulatory oversight in protecting people who live and invest in strata-managed properties,” he said. “NSW Fair Trading will continue to work closely with owners and residents of strata properties to ensure management of their schemes is transparent, accountable and in line with community expectations.”