A Canberra commercial real estate agent and strata company owner, Francesco Anthony Morella, is once again under scrutiny as Access Canberra reopens an investigation into allegations of bullying and harassment. The investigation, initially closed, has been revived at the request of the complainant, Merrilyn Sernack, who accuses Morella of a persistent bullying campaign following disagreements over management practices.
Morella, the director of Canberra Commercial and Canberra Strata, was previously ordered by the Federal Court to pay over $3 million to a company he liquidated shortly after purchasing. Despite winding up several companies with a combined deficit of approximately $6.3 million, Morella continues to manage significant apartment complexes across the Australian Capital Territory (ACT) through Canberra Strata.
Allegations and Legal Battles
The allegations against Morella stem from his management of a Kingston apartment complex where Dr. Sernack resides. She filed a complaint with Access Canberra in March 2025, accusing Morella of employing high-pressure tactics and failing to act in the best interests of his clients. Dr. Sernack claims to have updated her complaint monthly as new evidence emerged.
In July 2024, the owners corporation of the Kingston complex filed a civil claim against Morella’s company, RHCF Pty Ltd, alleging negligence and breach of statutory duty. If pursued, the case will be heard in the ACT Magistrate’s Court. The situation escalated in November 2024 when Morella terminated Canberra Strata’s contract with the complex, citing Dr. Sernack’s “undue interference” and “inconsistent expectations” as detrimental to his employees’ mental health and his companies’ reputation.
Personal Attacks and Contract Disputes
Morella’s termination email, sent before an executive committee meeting where Dr. Sernack was a candidate, named her directly. Dr. Sernack claims Morella refused to retract his unsubstantiated allegations. At the time, another of Morella’s companies, Actgall Pty Ltd, was in voluntary administration.
Under the terms of the contract, Morella was required to provide 28 days’ notice before termination, which he did not. Consequently, a month-to-month arrangement was negotiated until a new strata manager was appointed in April 2025. In February 2025, Morella emailed the complex’s executive committee, urging them to drop their negligence claim against RHCF, which, along with other Morella-owned companies, was embroiled in two Federal Court cases.
Community and Legal Reactions
By April 16, 2025, the residents had unanimously voted to end their contract with Canberra Strata. Shortly after, Morella threatened legal action against Dr. Sernack and another resident over the termination of the month-to-month arrangement.
Another resident, speaking to The Canberra Times, expressed support for Dr. Sernack, noting a lack of substantiation for Morella’s accusations. An email from Morella’s solicitor stated that Fair Trading and Compliance had addressed the matters with no further action, though the details remain confidential.
“We are instructed that those matters have been dealt with by Fair Trading and Compliance with no further action being taken. We are further instructed that the determination of Fair Trading and Compliance is marked confidential,” read the solicitor’s email dated September 19.
Ongoing Investigation and Future Implications
Dr. Sernack’s claims were initially closed by Access Canberra on September 9, 2025, but reopened for review on September 19 at her request. The review is reportedly ongoing, and Morella’s legal team claims to be unaware of the case’s reopening.
The renewed investigation highlights ongoing tensions within Canberra’s real estate sector and raises questions about the governance and accountability of strata management companies. As the situation unfolds, stakeholders within the industry and affected residents are keenly observing the outcomes, which could set precedents for future cases of alleged misconduct in property management.
As the review progresses, the implications for Morella and his companies remain uncertain. The case underscores the importance of transparent and fair management practices in maintaining trust and integrity within the real estate industry.
