ASIC charges developer over alleged $10m fraud

Property developer David McWilliams has been charged over an alleged $10.1 million fraud scheme involving investor funds raised for specialist disability accommodation projects, following an investigation by ASIC.

McWilliams appeared before the Southport Magistrates Court on June 22, facing 13 criminal charges, including allegations he dishonestly used investor funds and caused detriment to his company.

ASIC alleged the funds were intended to develop specialist disability accommodation for National Disability Insurance Scheme (NDIS) participants in Queensland and Western Australia.

The regulator alleged between July 2021 and October 2023, McWilliams diverted more than $10 million raised for specific development projects towards unrelated investments and purchases.

According to ASIC, the funds were allegedly used to acquire an Aston Martin luxury vehicle, cryptocurrency assets, a pub in Whyalla, a stake in a Seychelles-based litigation funder and a luxury apartment in Surfers Paradise purchased for his wife.

ASIC further alleged McWilliams made a false or misleading statement that induced investors to participate in one of the developments

Receivers previously appointed to companies associated with McWilliams found more than $90 million had been raised from over 500 investors for specialist disability accommodation projects. Of the six developments linked to the charges, work commenced on only one project, and none were completed.

"ASIC alleges McWilliams, as company director, dishonestly used investor funds, and otherwise caused detriment to his company, totalling $10,138,587," the regulator said.

The investigation began in July 2024 after ASIC received information from Queensland's Office of Liquor and Gaming Regulation, which suspected investor funds were being used for significant gambling activity at The Star casino.

If convicted, McWilliams faces a maximum penalty of 20 years' imprisonment.

The matter is being prosecuted by the Commonwealth Office of the Director of Public Prosecutions. Separate civil and contempt proceedings involving McWilliams, his wife Laura Fullarton and associated entities remain before the courts.