Developer disqualified for misuse of investor funds

ASIC found that Mr Steele had attested in an affidavit that he and another individual managed Eastco despite not being a listed director of the company, and had failed to lodge a number of documents such as BAS and income tax returns with the Australian Taxation Office.

Mr Steele was revealed to have allowed Eastco to enter into 12 loan agreements totalling over $2.1 million in circumstances where it was uncertain whether the company would receive approvals to complete a development project and reportedly had no intention of returning the funds received from investors once he became aware that Eastco would not receive the required approvals.

He also allowed EA Invest to enter into 22 loan agreements totalling over $2.4 million that he failed to invest the money as promised.

The investigation even uncovered the fact that Mr Steele had transferred investor funds into his personal bank accounts and used investor funds for personal expenses.