GC developer sent to jail

Gold Coast property developer Michael David Steele has been sent to jail for eight years after using investors’ money for himself and the benefit of his family.

Steele was sentenced in the Southport District Court last week after pleading guilty four counts of fraud.

Steele was sentenced to eight years for one count of fraud and four years for the remaining three counts. The sentences will be served concurrently.

He will be eligible for parole after having served a period of 20 months’ imprisonment.

Between May 2016 and February 2017, Steele persuaded 14 investors to contribute more than $1.3 million from their superannuation and savings to lend to EA Invest Pty Ltd and Marketing Machine International Pty Ltd.

The money was meant to be used to help fund a commercial and residential property development at Biggera Waters.

Instead of using the funds for the development, Steele used the funds to purchase a house in his wife’s name, paid his son’s university fees, bought cars, jewellery and spent money on international travel, entertainment, and online gambling. None of the investment monies were repaid to the investors.

ASIC Deputy Chair Sarah Court said the jail sentence imposed by the Court demonstrated the seriousness of Steele’s misconduct.

“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.

When handing down the sentence, Judge Prskalo said Steele was in control of the scheme at all times.

“No sentence I impose can undo the harm caused to investors who have lost their money,” Judge Prskalo said.