Former Sydney socialite and stylist Kelly Smythe has been accused by D'Leanne Lewis, a star of Luxe Listings Sydney, of selling her a counterfeit Chanel handbag. Lewis purchased the designer bag for $4,000 in 2023.

Lewis, a principal at Laing+Simmons Double Bay, reportedly discovered the alleged fake in April of this year when the handbag began to deteriorate and she took it to a Chanel store for repairs. A Chanel staff member allegedly informed Lewis that the bag's serial number was incorrect, suggesting it was not authentic or had been tampered with.

According to a source close to Lewis, the bag arrived in a Chanel box and was presented with all the hallmarks of a genuine item. The source stated that Lewis trusted Smythe, describing her as a reputable stylist with a good reputation, and had no reason to suspect the bag was not genuine.

Following the assessment at the Chanel store, Lewis reportedly contacted Smythe, who allegedly offered to resolve the issue. Smythe initially proposed a refund of $1,000, with the remaining $3,000 to be settled through $3,500 in Coco Republic vouchers and a lifetime 30% discount. Lewis is understood to have declined this offer and had been contemplating legal action.

However, shortly before publication, Smythe transferred an additional $3,400 to Lewis, referencing the payment as a final refund. Smythe stated this payment brought the total refund to $4,400, including GST, settling the outstanding amount. Lewis confirmed receipt of the payment and stated that legal action would be discontinued.

Despite the financial resolution, Lewis described the dispute as marking "the end of our friendship," expressing disappointment and stating, "This is someone I trusted. I never thought this would happen to me."

Smythe maintains she was unaware of any authenticity issues with the bag, which she reportedly purchased through Vestiaire Collective, a luxury resale platform. When questioned about the bag's authenticity, Smythe told media that she could not definitively call it fake without physically examining it for authentication once it was returned to her before being sent to the U.S.

Screenshots provided to media reportedly show Lewis alleging to Smythe that the bag was sold as brand new. Smythe's company, KS Style & Co, has recently fallen into liquidation, owing creditors up to $253,425. The company reportedly owes over $84,000 to the ATO and nearly $25,000 on an AMEX Platinum Business credit card, in addition to $77,000 in secured debt for a vehicle.

Smythe was previously involved in controversy when she faced criminal charges in May 2025 related to the alleged misuse of pharmaceutical scripts. She was charged with using false documents to obtain property and obtaining or attempting to get a prohibited drug by false representation. These charges were dropped in January of this year on mental health grounds, with conditions including psychiatric treatment and psychological therapy.