Note: This release does not refer to Mark John Buhagiar of www.markbuhagiar.com or Austlink Plus Pty Ltd.

Acting Minister for Fair Trading, Graham West today unveiled a ‘rogues gallery’ of ten unscrupulous traders brought to justice by NSW Fair Trading in 2009.

Mr West said the Government was proud of the results achieved over the last year, and issued a warning that inspections, investigations and prosecutions would continue unabated in 2010.

“Let this ‘rogues gallery’ serve as a warning to anyone who thinks they can treat NSW consumers with contempt,” Mr West said.

Among the individuals and companies successfully prosecuted by NSW Fair Trading in 2009 were:

• Armond Shoostovian – finance broker – convicted under the Consumer Credit Administration Act on 28 July 2009.  He was fined $183,600 and sentenced to a 2-year good behaviour bond.
• Mark Anthony Buhagiar – unlicensed and unqualified gas, refrigeration and air-conditioning fitter – convicted under the Home Building Act on 19 August 2009, fined $18,500. In addition, on 13 November 2009 he was convicted under s.307A for making a false or misleading application and fined $2,000 and placed on a good behaviour bond for 12 months.
• Michael Greco – unlicensed residential building work – convicted under the Home Building Act on 17 September 2009, fined $20,350.
• Abdel Rahman Hachem Kassem – convicted under the Motor Dealers Act on 10 September 2009, fined $37,583.
• George Hadchiti (also known as George Hadchity) – unlicensed and uninsured contractor – convicted under the Home Building Act on 21 May 2009, fined $28,865.
• Mahmoud Mohamad Ismail – unlicensed motor dealer, odometer interference – convicted under the Motor Dealers Act on 28 May 2009, fined $34,526.
• George Harellis – unlicensed, defective and potentially life threatening electrical work – convicted under the Home Building Act and the Electricity (Consumer Safety) Act on 22 May 2009, fined $18,373.
• Zuhret Korajac – disqualified builder – convicted under the Home Building Act on 6 February 2009 and fined $74,573.
• Mohamad El Homsi – odometer interference – convicted under the under the Motor Dealers Act on 8 July 2009 and fined $10,418.
• George Sekuloski – convicted 13 March 2009 for numerous offences under the Electricity (Consumer Safety) Act, with an order for fines and costs totalling $14,984.

Traders caught breaching the Fair Trading Act can receive penalties of up to $22,000 for an individual or $110,000 for a partnership or corporation.

Under the Motor Dealers Act 1974, people found dealing without a licence can face penalty notices of $5,500 or prosecution, with fines on conviction of up to $110,000.

Traders caught operating without a home building licence or contracting with an unlicensed person can incur fines of up to $22,000 for an individual or up to $110,000 for a company.

In September this year, the NSW Government strengthened fines under the Electricity (Consumer Safety) Act. Traders caught breaking the law risk penalties of up to $825,000 for a corporation or $82,500 and/or 2 years imprisonment for an individual.

“These people are posing as trusted local business people, and ripping off trusting, often vulnerable people,” Mr West said.

The Armond Shoostovian case achieved the largest monetary fine by Fair Trading in any prosecution in the last five years.

“Mr Shoostovian is a shamed finance broker who boasted of powerful connections,” Mr West said.

The Supreme Court found Mr Shoostovian, the sole director of Save Finance (formerly known as the Loan Enquiry Centre), guilty of a total of 108 breaches of sections 4C(1) and 4C(4) of the Consumer Credit Administration Act 1995

A further 28 charges under section 4H(1) of the Act were dismissed on condition of Mr Shoostovian entering into a 2-year good behaviour bond. If breached, Mr Shoostovian faces further substantial penalties.

In his judgement, Justice R. Howie stated:

The reason for “… taking this course because it appears to be proper to place the defendant under the supervision of this Court in relation to his conduct in this type of activity and it is only chance, although a slim one, that he might be deterred from similar conduct in the future … each (charge) is part of a systematic refusal to comply with the legislation … I have no doubt that the defendant never intended to comply with the provisions of the Act and any suggestion that he was endeavouring to do so was a charade. ”

In the 2008/2009 financial year, Fair Trading carried out 25,390 inspections across NSW and conducted targeted blitzes in metropolitan and regional centres, examining the conduct of gym proprietors, home builders, motor vehicle dealers and repairers, and product safety checks.

In relation to these inspections 762 traders were issued with penalty notices totalling more than $1 million in relation to 1,174 offences. This was an 18% increase on the previous year.” Mr West said.

“Fair Trading achieved an outstanding 96 per cent success rate in formal prosecutions, taking 85 defendants to court, resulting in $584,430 in fines and penalties.”

Mr West said 2010 would see even more intense scrutiny on dodgy dealers.

“Fair Trading receives approximately 7 million customer contacts each year,” he said.

“Last year (2009), some 130 staff from Fair Trading’s compliance, legal, home building and customer service divisions undertook the Certificate IV Government Investigation course.

“Extending training to frontline customer service staff means they will be even better equipped to spot emerging trends and disrupt illegal activities.

“In addition, 30 Fair Trading investigators undertook a Forensic Trust Accounting course, targeting the real estate industry.

“This will increase the pool of officers capable of undertaking detailed trust account assessments to identify irregularities and protect prospective property sellers and buyers.

“NSW families can rest assured that the Government will continue to invest time and money into ridding the marketplace of rip-off merchants this year,” he said.

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