Developer jailed after $2.2m investment scam

A Queensland property developer has been sentenced to nine years in prison after pleading guilty to dishonestly applying more than $2.2 million in investor funds to his own use of that of others.

Ian Omar Chester pleaded guilty in the Southport District Court on September 29, following an ASIC investigation into around 18 companies used as investment and development vehicles across five Southeast Queensland property projects.

The court heard Chester falsified investor authorities to secure the release of funds, with some money transferred to accounts in his name or used to repay personal debts despite knowing investors had provided the funds for specific purposes.

The projects attracted 190 investors, including people who used their self-managed superannuation fund savings to invest.

ASIC chair Sarah Court said investors had entrusted Chester with millions of dollars for property development, but substantial amounts were diverted from their intended purpose.

"This outcome demonstrates ASIC's commitment to holding directors and company officers accountable for misusing investor funds and ensuring they face serious criminal consequences," Court said.

The court also heard Chester provided an investor with information indicating one project remained on track; despite knowing the land had already been sold to an unrelated party, leading the investor to provide funds.

In sentencing, Judge Prskalo described the offending as "sustained and deliberate dishonesty", having considered 17 victim impact statements.

The judge found investors had suffered "real harm" and noted that using funds to pay creditors of other projects was effectively equivalent to paying oneself.

Chester will be eligible to apply for parole after serving three years of his sentence.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions following ASIC's investigation.

ASIC obtained Federal Court asset freezing orders against Chester and associated entities in July 2021, before liquidators were appointed to wind up the companies. He was charged with multiple criminal offences in December 2023.