Former property developer Michael David Steele was sentenced to eight years' imprisonment after using money invested for a commercial and residential property development at Biggera Waters on the Gold Coast for his own and the benefit of other family members.
Mr Steele was sentenced in the Southport District Court on 7 August 2025 after pleading guilty on 10 April 2025 to three counts of fraud contrary to section 408C(1)(a)(i), (2)(d) and one count of fraud contrary to section 408C(1)(a)(i), (2A) of the of Criminal Code (Qld).
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. Mr Steele will be eligible for parole after having served a period of 20 months' imprisonment.
Between May 2016 and February 2017, 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. Mr Steele was responsible for raising finance to enable EA Invest and Marketing Machine International to complete the development.
Instead of using the funds for the development, Mr 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 sentence imposed by the Court demonstrates the seriousness of Mr 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.'
When handing down the sentence, Judge Prskalo KC said, 'At all times, you were the controlling mind of the scheme.' 'Investors generally expressed their trust in you and as a result did not seek legal advice' and '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.'
'No sentence I impose can undo the harm caused to investors who have lost their money'.
As a result of his conviction Mr Steele is automatically disqualified from managing corporations until five years after his term of imprisonment is completed.
The matter was prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) following a referral from ASIC.
Background
ASIC relied on supplementary reports lodged by the liquidators of Eastco Developments Pty Ltd and EA Invest, namely David Hambleton of Rodgers Reidy and Glenn O'Kearney of GT Advisory and Consulting, respectively. ASIC assisted both liquidators in preparing their supplementary reports by providing funding from the Assetless Administration Fund.
ASIC conducted an investigation into allegations made by liquidators and disqualified Mr Steele from managing corporations for the maximum period of five years before commencing a criminal investigation (20-235MR).
On 10 April 2024 at Southport District Court Mr Steele pleaded guilty to the four fraud charges prior to a trial being scheduled (25-056MR).
At the time of the offences the following maximum penalties applied for s408C(1)(a)(i) Criminal Code (Qld). Prior to 9 December 2016 for amounts: at least $30,000 but less than $100,000 - imprisonment of 12 Years; more than $100,000 - imprisonment of 14 years. After 9 December 2016: more than $100,000 - imprisonment of 20 years.
