An unauthorised broker who sold fake builders’ warranty insurance to NSW construction companies has been fined $8000 and sentenced to 16 months’ imprisonment.

Jason Prasad, who sold the cover through his broker agency J&P Capital Insurance, was exposed due to the State Insurance Regulatory Authority’s work targeting uninsured building jobs and customer enquiries to state insurer icare.

“This resulted in Mr Prasad being investigated by Building Commission NSW before being referred to NSW Police for arrest and charging,” SIRA said. “Mr Prasad pleaded guilty to two fraud charges of dishonestly obtaining a financial advantage by deception.”

His 16 months’ imprisonment are to be served as an intensive corrections order, which means he will remain in the community under supervision.

SIRA says Prasad exposed builders to penalties for not holding compulsory insurance and left homeowners at risk of lacking cover.

icare is the sole provider of builders’ warranty cover in the state and distributes the compulsory Home Building Compensation Fund product via a list of approved brokers.

Cover is mandatory for home building projects worth more than $20,000.