Ex-NAB consultant sues banking major in a combined fair work and competition claim

A one-time National Australia Bank fraud manager is seeking $1.5m from her former employer for unfair dismissal even as she was planning to launch a rival mortgage app.

Former NAB fraud chief Kate Prendergast is suing the banking major. Picture: AFP

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Ex-National Australia Bank fraud manager Kate Prendergast is suing the banking major for $1.5m, and at the heart of the court fight is a dispute about her plan to launch a rival first-home buyer “middleman” app.

Ms Prendergast has alleged she was unfairly sacked in May last year as fraud operations senior consultant after she made employment complaints following an investigation into her business, “Snap that Home”.

She also alleged she was terminated after NAB levelled claims at her, including that she engaged in misconduct relating to expenses.

Snap that Home is a real estate listing app “targeted to first-home buyer requirements based on what state they are in, functioning as a middleman between the buyer and expert,” Ms Prendergast said in her court documents.

The app, which is yet to be launched, would allow its users to engage with real estate agents and inquire about financing and conveyancing, according to Ms Prendergast’s case.

Ms Prendergast, aged 36 when fired, was earning a $255,000 salary, according to court documents.

Former NAB fraud senior manager Kate Prendergast. Picture: Linkedin

In November 2021, she alleged NAB’s head of fraud operations, Adrian Epifano, told her a serious misconduct complaint had been raised about her business “but all the allegations were unsubstantiated”. However, Ms Prendergast was required to – and subsequently did – submit a conflict-of-interest declaration.

“Thereafter, the COI team advised that the business model was in competition with the respondent (NAB) and an impermissible conflict,” court documents read.

Ms Prendergast complained about that, and in 2022 alleged she submitted a “comprehensive” conflict-of-interest risk management plan.

NAB home ownership executive Andy Kerr rejected her plan in 2023, because of two reputational risks, she said. Ms Prendergast alleged the matter was mishandled.

Then in March last year, Ms Prendergast alleged she was told she was being investigated for misconduct, including that she falsely claimed approval for parking expenses, incurred expenses on her work card without executive approval and “incurred expenditures relating to the purchase of alcohol without executive level approval”.

Ms Prendergast vehemently denied all of the allegations and said she complained to NAB about the investigation, saying her reputation was damaged and she suffered “disparagement of her character amongst employees of the respondent, due to the investigation and the allegations”.

She alleged her employment was terminated effective immediately on May 21 last year.

In its defence, NAB denied mishandling Ms Prendergast’s conflict-of-interest matter and further alleged she “had considered resigning from her employment” with NAB during a meeting in November 2023.

NAB also denied Ms Prendergast made employment complaints, and alleged a number of Ms Prendergast’s allegations against the bank were “vague, embarrassing and liable to be struck out”.

Regarding the misconduct claims, the bank said it did investigate misuse of a purchasing card and allegations were also put to two other staff members.

NAB alleged the allegations had been substantiated, and said: “Given the seriousness of the substantiated conduct, the respondent was considering disciplinary action up to and including termination of the applicant’s employment.”

In its defence, NAB said it informed the Australian Securities and Investments Commission about the alleged conduct.

During a brief case management hearing on Friday, Ms Prendergast’s barrister, Geoff Lake, told the Federal Court in Melbourne his client was seeking an amount “in excess” of $1.5m.

“We would be proposing as a next step from here we provide particulars of that amount that is sought,” he said during a first case management hearing.

As well, Mr Lake revealed Ms Prendergast is planning to introduce additional claims against NAB – that the major bank engaged in anti-competitive conduct – that related to the Competition and Consumer Act.

“It’s effectively alleging the respondent has engaged in anti-competitive conduct in respect to matters that are raised in (Ms Prendergast’s) employment (and) general protections claims,” he said.

Appearing for NAB, barrister Stephanie Cheligoy told the court her client was content to discuss changes to Ms Prendergast’s claim between the parties before returning to court in July.

“Pleadings have closed. There has been a mediation,” she said.

Ms Cheligoy noted it was “novel” to fold in a competition claim with a general protections claim and agreed with Mr Lake that it would be preferable for the Federal Court, rather than the Federal Circuit Court (which typically hears fair work claims), to hear the case.

“The preference is to stay here and the basis for that is quantum. Also, the novel nature of the competition claim being run on the claim,” she said.

On her LinkedIn profile, Ms Prendergast said she worked at NAB as a fraud operations senior consultant for nearly three years between October 2021 and May 2024.

Before that, she was a digital fraud and scams manager, branch manager and personal banker with NAB between August 2018 and September 2019.

In her bio, Ms Prendergast said she was “passionate about changing the way Australians perceive the first-home buying process”.

“It can be overwhelming, daunting and hard to know where to start, which is why I started Snap that Home, an innovative app for all things first home buying and more,” she said.

“Imagine enjoying the first home buying process! For a very small number of people this is the case however, the vast majority don’t have a pleasant experience. This is about to change. Release dates coming soon.”

The case continues.

Originally published as Ex-NAB consultant sues banking major in a combined fair work and competition claim