An unspecified number of consumers lost their rights to make claims for uncompleted houses after their bogus builder obtained domestic building insurance using stolen identities, the Victorian Building Authority (VBA) says.

Mentor Gormani undertook several projects in Melbourne suburbs using the registration numbers of other builders.

Builders are required to take out domestic building cover for work valued at more than $16,000.

He was caught after his company went into liquidation and clients’ insurance claims for unfinished work were rejected.

A magistrates court fined him almost $31,000.

“The rules and regulations requiring building practitioners to be registered and to operate with the appropriate insurance exist to safeguard Victorians who build and renovate,” VBA CEO Prue Digby said.

“Those who seek to operate outside these rules and regulations undermine the building industry and erode consumer confidence in honest registered building practitioners who take pride in their work and deliver an excellent product for Victorians.”

Builders Collective of Australia National President Phil Dwyer is unhappy with the outcome.

“The consumers all had a paid warranty insurance policy provided by the builder, who had a credible website, and there was no reason to think anything was underhand or at risk,” Mr Dwyer told insuranceNEWS.com.au.

“This is a classic case of… using a technicality to avoid paying out that left all the consumers without any protection whatsoever.”