This article is from the Australian Property Journal archive
A GOLD Coast developer and his wife who just splashed out $1.47 million on a new home have had their assets frozen, after ASIC obtained orders in the Queensland Supreme Court against the pair in connection to the use of funds raised from investors for multiple property projects.
ASIC obtained orders on Monday restraining Ian Chester and Sophie Chester from removing their assets from Australia, disposing of property or dealing with any available money in an associated bank account.
“ASIC had concerns that Mr Chester had used funds invested in some of the projects for his own benefit or not for the purpose for which the funds were invested. Mr Chester did not contest the making of freezing orders against him. In making the orders in respect of Sophie Chester, the Court was satisfied she had also dealt with investor funds,” ASIC said in a statement.
The orders have effect until a further hearing before the Court, to take place no later than 21st January 2022.
A former McGrath agent, Ian Chester has left a trail of failed projects, and tipped the solely-controlled Vested Property Group Pty Ltd and 11 other related entities into liquidation less than three months after buying a new Surfers Paradise pad with his wife.
The Courier Mail reported earlier this month that about 100 investors put almost $5.2 million into five of those entities, and 18 investors in a sixth company appointed a liquidator after putting $1.35 million into a townhouse development. Work on the partly-completed Highgate Hill project was halted earlier this year and financier Trilogy Funds Management – a secured creditor owed $7.6 million – has taken control of the site with hopes to appoint a new builder to complete the works.
Ian Chester had planned to build the first apartments on the high-end Sovereign Islands before meeting fierce opposition from local residents, as well as hurdles at Council level. Chester won a court hearing two years ago for the project, named Residences on Royal Albert, but construction on the eight units never began and the site has been put to the market. The units were to be built across a pair of three-level buildings and priced from $3 million each.
