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Businessman fined $10k for failing to supply goods

Adam Zuchetti
Adam Zuchetti
19 September 2018 1 minute readShare
gavel, court

A North Queensland businessman has been ordered to pay $10,000 after accepting deposits from three customers for products that were never delivered.

Cairns Magistrates Court made the ruling against Jonothan Nathan Leahy after he pleaded guilty to failing to supply paid-for goods.

Mr Leahy, whose company Obihaka operates the businesses Tropical Lifestyle and Living, as well as The Granny Flat and Timber Cabin Superstore, admitted he had accepted deposits from three customers totalling $20,815 for the supply of outdoor pavilions and gazebos between September 2015 and October 2016.

But the items were never supplied, despite the customers making what was described as “numerous attempts over an 11-month period” to contact the business.

Then in January 2017, Mr Leahy sold the business to the manager he himself had appointed.

ASIC registers show that Obihaka was subsequently placed into liquidation.

The court said it took Mr Leahy’s guilty plea and cooperation with Queensland’s Office of Fair Trading, which prosecuted the case, into consideration when determining the penalty.

“The OFT will take action against businesses that accept money from consumers and fail to supply the goods within a reasonable time frame,” said Sharon Simmers, acting executive director of Fair Trading. 

Businessman fined $10k for failing to supply goods
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Adam Zuchetti
Adam Zuchetti

Adam Zuchetti is the former editor of MyBusiness and a senior freelance media professional, specialising in the fields of business, personal finance and property. In 2020, he also embarked on his own business journey – inspired in part by the entrepreneurs and founders he had met through his journalistic work – with the launch of customised pet gifting and subscription service Paws N’ All.

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