Hossean Pourzand denies masterminding $20,000,000 insurance scam

A West Australian property tycoon is disputing allegations it was his idea to set fire to a Welshpool factory he owned in order to make a $20 million insurance claim.

Hossean Pourzand, 63, was due to make his first appearance in WA's Supreme Court on arson and fraud charges, but was not present.

His lawyer revealed his client would not be present because he was being treated in a psychiatric facility as a voluntary patient.

Pourzand previously pleaded guilty to two charges relating to a fire in the Stirling Gardens Magistrates Court.

The blaze left an estimated damage bill of $10 million at the Pilbara Street warehouse, vacated by a hardware store the month before.

Pourzand's co-accused, Imam Rahimi, has also pleaded guilty.