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

The pair 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 set fire to 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, attached to Chifley Local Area Command, outlined how 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 for $73,000.

On April 23, 2013 the couple then 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 that they left their property on June 20 to collect their daughter from school and then continued into Orange to do some shopping.

After returning home and finding their property alight, Mark Babic provided police with a statement that outlined how he and his wife left the property at 4.40pm.

He said they travelled into Millthorpe and then went to Orange to shop, stopping for tea at Red Rooster.

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

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

Police alleged his wife, Christine, remained in the car and contacted the NRMA about an insurance claim.

According to police observations at the scene, neither of the Babics appeared upset or distressed.

Police also alleged there were two dogs and a cat inside the back of the car, which the Babics said were their favourites and had been taken to Orange to buy 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.

Forensic evidence provided in the facts sheets also showed that clothing and carpet in the bedroom tested positive to accelerant.

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