This article is from the Australian Property Journal archive
A FORMER Gold Coast property developer has been sentenced to eight years imprisonment for fraud.
Darryl John Loane was sentenced in the Southport District Court. He will serve a minimum of 15 months.
Loane, 41, had pleaded guilty in September to dishonestly obtaining a loan of $4,700,000 from Lawloan Mortgages Pty Ltd on or about May 07 1999 for the development of Cove Resort Pty Ltd in the Whitsundays. He was director of the company at the time of the offence.
The Australian Securities and Investments Commission alleged Loane initially purchased the Whitsunday property for $15,000,000 in cash. He later signed a supplementary agreement reducing the purchase price to $7,500,000 of which 10% was to be paid in cash and the remainder in trade dollars.
To secure the finance, Loane sought a valuation from Stanton Hillier Parker. ASIC alleged he incorrectly advised Stanton Hillier Parker that he’d paid $15,000,000 in cash instead of the reduced purchase price. This consequently caused the valuers to provide an inflated valuation of up to $3,000,000.
Loane then approached Elliott & Harvey lawyers of Nerang, QLD, who acted for Lawloan Mortgages Pty Ltd and used the inflated valuation to dishonestly obtain a loan of $4,700,000 for Cove Resort Pty Ltd.
Australian Property Journal
