Qld developer pleads guilty to $1.3m fraud
A former Gold Coast property developer has pleaded guilty to four fraud charges for misappropriating over $1.3 million in investor funds related to a land development in Biggera Waters.
Former Gold Coast property developer, Michael David Steele, pleaded guilty to four consolidated counts of fraud for misappropriating more than $1.3 million in investor funds from companies he managed between May 2016 and February 2017.
Steele pleaded guilty on 10 April 2025, in front of the Southport District Court in Queensland.
A total of 14 investors deposited funds for land development in Biggera Waters; however, Steele misappropriated the money for personal gain, including the purchase of motor vehicles and a residential property.
The charges relate to an investigation by the Australian Securities and Investments Commission (ASIC), in which Steele was charged with seven counts of fraud in June 2023.
During the investigation, ASIC alleged that Steele misled 14 investors into withdrawing funds from their employer superannuation and savings accounts to invest in a property development in Biggera Waters, Queensland.
Steele then allegedly suggested that the investors deposit their funds into EA Invest Pty Ltd, the corporate entity responsible for acquiring and developing the property in Biggera Waters.
ASIC alleged that at the time of the offence, Steele was a shadow director and the controlling mind behind EA Invest Pty Ltd.
Under the Criminal Code (Qld), Steele could face a maximum penalty of 12 to 20 years’ imprisonment, depending on the date of the offence and the amount of fraud involved.
In 2020, Steele was disqualified from operating companies until September 2025 due to the collapse of his two companies, Eastco Developments and EA Invest.
EA Invest entered external administration on 12 February 2018, followed by Eastco on 11 April 2018, with both companies owing investors more than $4.5 million.
ASIC’s 2020 investigation revealed that Steele did not meet tax obligations and engaged in multimillion-dollar loan agreements despite uncertainty regarding project approvals.
The regulator stated that Steele continued to accept investor funds without any intention of returning them once approvals fell through, failing to invest the money and instead transferring it into his accounts for personal expenses.
A sentencing hearing has been set for 6 June.