Eight year sentence for GC property developer
A former Gold Coast property developer has been sentenced to eight years in prison after several cases of fraud were exposed.
Michael David Steele used commercial and residential development funds for a Biggera Waters property for his own and his familyâs benefit, a court has found.
Steele was charged with seven counts of fraud in March 2023. He was an officer for both Eastco Developments Pty Ltd and EA Invest Pty Ltd.
The sentencing was decided on August 7 in the Southport District Court after Steele plead guilty on April 10 to four counts of fraud.
Steele will be eligible for parole after serving a period of 20 monthâs imprisonment. Under the Criminal Code (Qld) the maximum period of imprisonment for the offences is between 12 and 20 years.
ASIC Deputy Chair Sarah Court said the severity of the sentencing shows the seriousness of the crime.
âWhen individuals misappropriate funds for personal gain, they not only harm their investors but also undermine the integrity of the financial system, diminishing public trust in investment opportunities,â Court said.
In 2016-17, Steele encouraged 14 investors to withdraw more than $1.3 million from their superannuation and other savings. This money was lent to EA Invest Pty Ltd and Marketing Machine International Pty Ltd for the Biggera Waters development. Steele was responsible for raising funds to complete the development.
Instead, Steele used the funds to purchase a house under his wifeâs name and to clear his sonâs university fees. He also used the money to pay for cars, jewellery, international travel, entertainment and online gambling. No funds were repaid to investors.
In sentencing, Judge Prskalo KC said Steeleâs dishonest conduct caused harm to investors who had lost money.
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âInvestors generally expressed their trust in you and as a result did not seek legal advice. The gravamen of your offending is of course the use of money dishonestly for personal expenses when that money had been given to you to invest in a development project,â Judge Prskalo KC said.
Michael David Steele will be automatically prohibited from managing corporations until five years after his imprisonment ends.
The Office of the Director of Public Prosecutions carried out the prosecution following a referral from ASIC.
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