The man behind a Victorian company that fraudulently insured $100 million of building projects faces five years in jail after pleading guilty to charges brought by the Australian Securities and Investments Commission (ASIC).

Anthony John Scott of Blackburn in Melbourne's eastern suburbs pleaded guilty in the County Court last week to carrying on a financial services business without a licence, and one count of abetting dishonest conduct.

ASIC alleged that between June 2003 and March 2004 Mr Scott issued builders' warranty bonds to 792 projects throughout Victoria. The instruments provided no protection to homeowners.

Mr Scott's company, Homesafe, issued the certificates to builders knowing there was no money set aside to pay possible claims.

Because the bonds were a form of insurance, ASIC also charged Mr Scott with selling them without an Australian financial services licence.

Homesafe was put into liquidation in August 2004 after ASIC made a successful application to the Supreme Court to have it wound up.

Last year Mr Scott's son and former director of Homesafe, James Alexander Scott, was found guilty of selling financial products without a licence and on 15 counts of dishonest conduct.

He was fined $5000 and ordered to do 250 hours of community work.

Another former Homesafe director, Geoffrey Wade, pleaded guilty in 2005 to carrying on financial services without a licence.

Mr Scott senior is due to be sentenced on November 19.