Fair Trading Deputy Commissioner Steve Griffin today said a Kenthurst man had been sentenced to 300 hours community service and ordered to pay $1,816 in costs by Parramatta Local Court.

Mr Griffin said Mark Cormack was convicted of four counts of breaching section 300(2) of the Crimes Act for using false home warranty insurance certificates by providing them to a building certifier.

“This result sends a strong message to the community and other builders not to engage in criminal behaviour as they face severe penalties,” he said.

“Mark Cormack used home warranty insurance certificates that were false and not worth the paper they were written on.

“His dishonest and fraudulent behaviour left consumers possibly unprotected against defective or incomplete work and therefore vulnerable to financial loss.”

In April 2009 Fair Trading cancelled Mark Cormack’s company licence, Latitude Residential Pty Limited, due to an investigation into offences relating to operating without home warranty insurance and supplying home owners with fraudulent certificates of home warranty insurance.

As a result of Fair Trading’s investigation and cancellation of its licence, the company entered into voluntary administration.

Mr Griffin said home warranty insurance was an integral part of the consumer protection package and was mandatory in NSW for all home building work valued at more than $12,000.

“It provides an important safety net for consumers, providing people building or renovating their home with up to $300,000 in cover,” he said.

“Insurance must be in place before work begins and before traders can demand or receive any payment.”

A trader’s credentials can be quickly and easily established through a licence check on the NSW Fair Trading website or by calling 13 32 20.

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