Fair Trading Minister Eleni Petinos warned residents on Monday not to deal with a company calling itself Green Magic Homes Australia, who had been banned from advertising, contracting or undertaking any residential building work that required a licence.

A letter from Greens Magic Homes general counsel James Beagle, shared with AAP, and sent to Ms Petinos' electorate email address earlier this week, explained how the company became involved in the minister's warning.

Green Magic Homes is an award-winning international eco-home building module company with offices in Europe, the US and New Zealand.

Green Magic Homes Australia was set up without approval by a man who was a sub-distributor for the New Zealand-based Green Magic Homes Australasia.

"Our hearts go out to each of the victims of apparent fraud by (this man)," Mr Beagle wrote.

"I must emphasise that (he) has never contracted directly with our entities."

Green Magic Homes spokesman Carlos Taminez said the company was ready to clean up the contractor's mess.

"One of their biggest concerns is that people in NSW do not realise we are there to help."

"We will work with licensed builders in Australia, teach them how to build the product and even provide homes at cost," he said in a statement.

The company was also interested in increasing its presence in NSW, training and certifying building professionals to assemble its patented earth-covered building modules, which could aid in providing housing in the wake of future disasters.

"We are grateful that Minister Petinos identified this issue as we are all focused on protecting and servicing the community," Mr Taminez said.

Ms Petinos on Monday said a customer had paid $500,000 for two builds which had only had minor excavation work completed, and the contractor had not disclosed prior fraud-related convictions when applying for a licence last year.

Work was also undertaken without the appropriate insurance, she said, and it appeared funds had been spent on personal expenses including travel, liquor and gambling.

Australian Associated Press