ResidentialClare BurnettThu 01 Oct 26
SEQ Developer Handed Prison Sentence After ASIC Investigation
A former Gold Coast developer has been sentenced to nine years in prison after an ASIC investigation into multiple property development companies.
Ian Omar Chester pleaded guilty on September 29 to dishonestly using more than $2.2 million in investor funds for his own and the personal expenses of others. Some were used to service debts or paid to accounts in his name.
Chester was accused of falsifying investor authorities to secure the release of funds, ASIC said, as he knew that funds had been invested for other purposes.
Chester was sentenced to nine years’ imprisonment at the Southport District Court for aggravated fraud. He will be eligible to apply for parole after three years.
Chester was the sole director of 18 companies used as vehicles in five property development projects. These companies were set up to deliver property projects on the Gold Coast, including a site at 53 Rankin Parade, Main Beach.
According to 2021 court documents, however, no land had been acquired at Rankin Parade and no development ever took place. But funds were allegedly retained from investors and the court heard that there was a transfer of funds from the Rankin Parade company to another, of which Chester was the sole director.
He had raised funds from 190 investors, many whom had used part of their self-managed super funds to invest in the projects under the Vested Group banner.
The Court heard that, despite knowing the land for one development had been sold to an unrelated party, Chester caused an investor to believe the project was on track.
In handing down the sentence and having heard 17 victim impact statements, Judge Katarina Prskalo KC said that investors had worked hard to save money that was now lost, describing Chester’s offending as “sustained and deliberate dishonesty”.
ASIC chair Sarah Court said that investors entrusted Chester with millions of dollars, which were then diverted away from the purposes he represented to investors.
“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 sentencing comes five years after the collapse of Chester’s Vested Group. In July 2021, 14 companies related to Chester were placed into liquidation, including Vested Capital Pty Ltd and Vested Property Group Pty Ltd.
ASIC originally filed orders in 2021 against Ian and Sophie Sylvia Chester of the Gold Coast, seeking to freeze assets.
At the time, it said it had “concerns” that Chester had used funds for his own benefit.
Chester was declared bankrupt in July 2022.
In 2023, Chester appeared before the Southport Magistrates Court where he was charged with 15 counts of fraud, three counts of falsifying company records and two counts of providing false or misleading information to the members of a corporation.
The case was prosecuted by the Office of the Director of Public Prosecutions following an investigation by ASIC.
