Christine Babic, 55, and her husband, Mark James Babic, 59,  of Pym Street, Millthorpe, appeared before magistrate Michael Allen on Friday and were found guilty of dishonestly for gain destroying or damaging property and publishing false or misleading material to obtain property.

The pair had earlier pleaded not guilty to the charges and faced a three-day hearing in August before Mr Allen found them guilty. He has ordered a pre-sentence report.

Police facts tendered to the court told how between 4.30pm and 7pm on June 20, 2013 the couple burned their property, ‘Penrose’ at Millthorpe, and then made a false statement and claim to the NRMA to obtain an insurance payout.

In the police facts, detective in charge of the investigation, Megan Fawkner, said the couple purchased the property 15 years ago, but their insurance with CGU insurance was cancelled due to non payment. In that policy the house was insured for $177,000 and its contents were insured for $73,000.

On April 23, 2013 the couple took out a policy with the NRMA, insuring the house for $565,000 and its contents for $100,000.

After the fire, the couple told police they left their property on June 20 to collect their daughter from school and then continued into Orange to shop.

After returning home and finding their property alight, Mark Babic provided police with a statement which said he and his wife left the property at 4.40pm, travelled into Millthorpe and then went to Orange to shop, stopping for tea at Red Rooster. 

Babic told police when he returned to the property at 7.20pm it was in flames.

He said he had left a kerosene heater on so it wouldn’t be cold when they got home, and there had been two cats inside the house, which he said may have been fighting and knocked the heater over.

Police alleged Christine Babic remained in the car and contacted the NRMA to make a claim. According to police observations at the scene, neither appeared upset or distressed.

Police also alleged there were two dogs and a cat in the car, which the Babics said were their favourites and had been taken to Orange to get pet coats, but they had run out of time.

Police also allege most of the couple’s property had been removed from the house prior to the fire. When asked about this they told authorities it had been removed and placed in shipping containers because they intended to put the property on the market.

The following day forensic police attended the property and subsequently ruled out the heater as the cause of fire, saying human intervention was the only possible cause. 

The matter has been adjourned for sentencing on December 1 in Bathurst Local Court.