A former property developer has been sentenced to eight years’ imprisonment for defrauding super investment funds, ASIC has confirmed.
Gold Coast-based property developer, Michael Steele, was found to be using money invested for a commercial and residential property development at Biggera Waters, the Australian Securities and Investments Commission (ASIC) has stated.
According to ASIC, Steele used the funds for the benefit of himself and other family members.
The Southport District Court sentenced Steele on 7 August 2025 after a guilty plea 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).
It was alleged that between May 2016 and February 2017, Steele convinced 14 investors to withdraw over $1.3 million from their superannuation funds (along with other savings) in order to lend to EA Invest Pty Ltd and Marketing Machine International Pty Ltd for the Biggera Waters development.
Steele was found responsible for raising the funds to complete the development, ASIC stated.
However, it was determined that Steele had instead used the procured funds to buy a house in his wife’s name, pay off his son’s uni fees, and engaged in indulgent spending (purchasing cars, jewellery, along with using the funds for international travel, online gambling, and entertainment).
ASIC confirmed that none of the investment monies were paid back 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.”
Judge Prskalo KC stated that at all times, Steele was “controlling the mind of the scheme” when handing down the sentencing.
“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,” Judge Prskalo further stated.
“No sentence I impose can undo the harm caused to investors who have lost their money.”
Steele has been automatically disqualified from managing corporations for five years after his prison term as a result of his conviction.
