A 25-year-old entrepreneur accepted $1.3 million for tiny homes but failed to supply them in a reasonable time, the Victorian consumer watchdog alleges.
Spencer Porter is facing 42 criminal charges relating to his businesses My Tiny Home Kit Australia and Property Magician, following an investigation by Consumer Affairs Victoria.
My Tiny Home Kit was founded in 2022 and promised customers affordable tiny homes as a solution to the housing crisis. The company went into liquidation in May.
The charges against Mr Porter — a self-described "visionary" who has been trying to make it big in business since he was 15 — relate to allegations that he accepted payments from 42 consumers for custom tiny homes, but failed to deliver the products within a reasonable time.
My Tiny Home Kit promised customers affordable tiny homes as a solution to the housing crisis. (Supplied)
"The allegations we've made against Mr Porter are significant and carry serious penalties," the director of Consumer Affairs Victoria, Nicole Rich, said.
"We see businesses get into financial trouble and go into liquidation in good faith. But we allege that Mr Porter and his business acted recklessly and knowingly accepted money from people without delivering products."
Each charge carries a maximum penalty of $2.5 million.
'Devastating impact on people'
Customer Lyndy U'ren says she now has hope that "justice may happen". (ABC News: Emily Jane Smith)
Melbourne woman Lyndy U'Ren purchased a tiny home for $28,000 from Spencer Porter in 2022 and said she only received a partial frame. She hopes the criminal proceedings will help her and other alleged victims.
"I feel there is a hope that justice may happen," she said.
"There has been a devastating impact on people … they feel alone and unsupported."
In May a 7.30 investigation featured customers who described being "ripped off" by Mr Porter, including a Sydney father who paid more than $32,000 for a tiny home for his teenage daughter.
"It's almost beyond imagining, losing that much money for nothing," he said.
A render of a tiny home kit sold by Spencer Porter. (Supplied)
The liquidator of My Tiny Home Kit said the company might have been trading insolvent for almost one year, saying Mr Porter had "no real prospect" of supplying the product he sold.
Menzies Advisory principal Michael Caspaney's statutory report into the Melbourne business said initial estimates showed there were more than 130 creditors owed $3.4 million.
In August, Mr Porter denied his company was trading insolvent.
Spencer Porter declared bankruptcy in June. (Supplied)
In a statement to 7.30 on Tuesday, Mr Porter said he never knowingly accepted payments from customers with the intent of failing to deliver.
"My commitment to fulfilling those orders was genuine, and I did everything in my power to meet the expectations of those who trusted me," he said.
"When I was informed that my company was insolvent, I took immediate and responsible action. I made the decision to liquidate both businesses and file for bankruptcy, believing this was the most ethical and responsible course of action to take."
"As I am still processing the situation, I am unable to provide further comment at this time."
The matter is listed in Melbourne's Magistrates' Court in December.
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