‘Zero tolerance for rogue practitioners’: Aycon Constructions & Building Services fined $250k

A construction company busted swindling customers with fake insurance certificates has copped the largest penalty ever handed out by the Victorian Building Authority.

Aycon Constructions & Building Services has been suspended from the industry for three years.

A dodgy home builder who faked insurance certificates for more than 150 permit applications has been hit with a record fine and suspended from the industry for three years.

Seyit Ayranci, the director of Aycon Constructions & Building Services, was busted in May following a probe into the company’s insurance coverage for dozens of families building dream homes.

The Herald Sun revealed an investigation by the Victorian Building Authority had found false documents attached to permits, meaning that there was no protection for customers despite construction starting.

The $250,000 penalty is the largest recorded, with fines toughened in the aftermath of the Porter Davis collapse last year.

Aycon Constructions & Building Services was busted in May following a probe into the company’s insurance coverage. Picture: Instagram

That saga saw hundreds of customers without insurance, with the State Government stepping in to cover the liability, and left about 1700 home building projects in limbo while families scrambled to find alternative builders.

The Aycon rort, which applied to finished homes as well as half-built homes, has left dozens of clients scrambling to find a new builder and will likely leave them with extra costs.

It also means that any non-compliant work is not covered by insurance.

Victorian Building Authority commissioner and chief executive, Anna Cronin, said the regulator had no tolerance for rogue operators.

“This record penalty shows the VBA won’t hesitate to use its full range of enforcement powers to protect consumers from unprofessional conduct and non-compliant building work,” Ms Cronin said.

“We have zero tolerance for rogue practitioners and are focused on removing them from the industry.”

The case has reinforced warnings for customers to check registration and valid insurance documents, rather than relying on assurances from builders, before handing over deposits.

Ms Cronin said the law was clear about the need for policies to be purchased before work begins on any project over $16,000, and that Victorian Managed Insurance Authority documents could be checked at a BuildVic website.

“Consumers should always ensure their builder is registered and has proof of a valid domestic building insurance policy which is required by law,” she said.

The VBA said it was “actively working with our government partners to support affected customers of Aycon”.

In May the regulator raided four sites, in Oaklands Junction, Aintree, Woodstock and Somerton, to gather evidence of alleged fraud that had allegedly occurred for several years.

At the time only a handful of complaints had been made by customers, and it was through data matching that the scale of the issue was exposed.