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Dodgy WA business fined $160k for failing to deliver shed and patio projects

An Albany shed seller faced legal consequences for not completing contracted shed and patio projects for consumers and operating as an unregistered building contractor.

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Armand Javellana, trading as Aussie Sheds Albany, was convicted for breaching Australian consumer laws on 9 June 2023.

Consumer Protection first issued a warning to the public in August 2020 about Mr Javellena’s business practices after receiving 50 complaints from consumers who paid deposits for shed and patio works but experienced little or no work completed.

Commissioner for Consumer Protection Trish Blake said the agency was alarmed by the high number of consumer complaints about the business.

“We were very concerned when complaints against Mr Javellana started mounting in 2020 and alarmed at the significant amount of money consumers had paid for incomplete sheds,” she said.

According to the agency, 11 consumers paid large deposits for sheds, with one consumer paying a large deposit for a patio roof. While the majority of the shed or patio works were to be completed on properties in the south-west, the investigation showed two sheds were purchased by consumers in NSW and Queensland.

Mr Javellana filed for bankruptcy shortly after the public warning the government agency issued, which recommended that consumers avoid dealing with the business or provide further progress payments until work had been completed.

In February, Mr Javellana was convicted of not being a registered building contractor, contrary to the Building Services (Registration) Act 2011.

He was also found guilty of violating the Home Building Contracts Act 1991 by entering into home building contracts that demanded deposits nearly 10 times the legal maximum of 6.5 per cent of the contract value prior to commencing the work.

“While Mr Javellana wasn’t fined in this instance, he has been forced to pay deposits back and was fined $10,000 earlier this year following prosecution by Building and Energy for entering into contracts without the required building registration and taking excessive deposits up to 10 times the allowable value of 6.5 per cent before work commenced,” Ms Blake stated.

But the magistrate, Catherine Crawford, was reportedly “not satisfied” that Mr Javellana had the capacity to pay a fine and also pay the victims back their deposits for his offences, so the decision was made to award compensation to the consumers.

The business was ordered to pay compensation totalling $158,853 to consumers who paid deposits with little or no work completed. He was also ordered to pay costs of $661.30.

Additionally, Ms Crawford imposed a conditional release order of $1,000 on each of the 12 charges for a period of 12 months.

In the event Mr Javellana reoffends in Western Australia or other states/territories, he can be brought back to court and resentenced in the sum of $1,000 per charge.

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Ms Blake said the latest conviction was a great result for the consumers who were left out of pocket for a significantly long time, expressing her hope that both convictions will deter Mr Javellana and others from conducting illegal activities in future.

“Consumers should only pay small deposits where possible to reduce their risk, and for bigger jobs, only make progress payments once stages of the work have been completed.

“In the case of one of the consumers in this case, they were able to seek a chargeback for their deposit from their bank, so it is highly recommended to pay by credit card, which offers extra protection to consumers if goods and services are not provided,” she concluded.

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