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Property developer cops 9-year jail sentence over $2.2m investor fraud
A Queensland property developer has been sentenced to nine years in prison after admitting to misappropriating more than $2.2 million in funds from investors.
Former property developer Ian Omar Chester has been sentenced to nine years in prison for aggravated fraud after an ASIC investigation.
The regulator found Chester dishonestly applied more than $2.2 million in investor funds across several South-East Queensland property development companies.
At the time of ASIC’s investigation, Chester was the sole director of about 18 companies involved in five property development projects and used to manage investor funds.
The projects raised funds from 190 investors, many of whom used their self-managed super funds (SMSF) to invest.
Chester pleaded guilty in the Southport District Court on 29 September 2026 to dishonestly using $2.2 million in investor funds for himself and others after falsifying investor authorities to secure their release.
The court heard that some of the funds were diverted into accounts held in his name or used to pay personal debts, despite knowing the money had been invested for specific purposes.
Under Queensland’s Criminal Code, fraud is considered aggravated when certain circumstances apply, including where the amount involved is at least $100,000, or the offender is found to be conducting a business of fraud.
ASIC’s investigation into Chester dates back to July 2021, when the regulator secured Federal Court orders freezing his assets and those of associated entities, which were subsequently placed into liquidation.
In December 2023, Chester was charged with multiple criminal offences linked to several companies involved in Gold Coast property development projects.
Chester will be eligible for parole after three years.
Investors bearing the brunt
Sentencing Chester in the Southport District Court, Judge Katarina Prskalo KC said that the investors had worked hard to build their savings, only to lose the money.
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Judge Prskalo described Chester’s conduct as “sustained and deliberate dishonesty”.
She said that after considering 17 victim impact statements, investors had suffered “real harm”, noting that using their money to pay creditors of other projects was effectively the same as using it for himself.
In one instance, the court heard that despite knowing the land for one development had been sold to an unrelated party, Chester told an investor the project was on track, prompting them to invest.
ASIC chair Sarah Court said the probe outcome reinforced ASIC’s commitments to hold developers to account for misusing investors’ funds.
“Investors entrusted Chester with millions of dollars for property development projects. Instead, substantial funds were diverted away from the purposes represented to investors.”
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