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A former property developer has been sentenced to eight years’ imprisonment after using investment funds for a property development for his own and his family’s benefit.
Former Gold Coast property developer Michael David Steele has been imprisoned for eight years following several cases of fraud involving commercial and residential development funds.
Steele was sentenced to eight years in prison in the Southport District Court on 7 August, over the offences committed between May 2016 and February 2017, according to the Australian Securities and Investment Commission (ASIC).
“Mr Steele persuaded 14 investors to withdraw more than $1.3 million from their superannuation and other savings to lend to EA Invest Pty Ltd and Marketing Machine International Pty Ltd for the Biggera Waters development,” ASIC said.
“Mr Steele was responsible for raising finance to enable EA Invest and Marketing Machine International to complete the development.”
Steele used the funds to purchase a house in his wife’s name, pay his son’s university fees, buy cars and jewellery.
He also spent money on international travel, entertainment, and online gambling, with none of the investment money repaid to investors.
Steele was sentenced after pleading guilty on 10 April to four counts of fraud.
“Mr Steele was sentenced to eight years for one count of fraud and four years for the remaining three counts of fraud, with the sentences to be served concurrently,” ASIC said.
“Mr Steele will be eligible for parole after having served a period of 20 months’ imprisonment.”
ASIC deputy chair, Sarah Court, said the sentence reflects the seriousness of the offences committed by Steele.
“When 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,” she said.
Judge Prskalo KC, when handing down the sentence, said Steele was the “controlling mind of the scheme”.
She also said: “No sentence I impose can undo the harm caused to investors who have lost their money.”
Steele is now automatically disqualified from managing corporations until five years after his term of imprisonment is completed.
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