Property developer to stand trial for fraud
A former Gold Coast property developer has been committed to stand trial for fraud, having raised about $2.2 million from Australian investors in an unregistered managed investment scheme (MIS).
David Elliot Kennedy has been in custody in Australia since his extradition from the USA in December, 2010, where he was incarcerated from July 2005 to November 2010 for an unrelated matter of fraud.
He appeared in Brisbane Magistrate’s Court last week on 11 counts laid by the Australian Securities and Investments Commission (ASIC) of dishonestly obtaining a benefit of $728,000 under section 408C(1)(d) of the Criminal Code (Queensland) and one count of carrying on an unlicensed financial services business.
ASIC has alleged that First Foundation Developments and Kennedy offered securities in an unregistered MIS between October 2002 and April 2003, raising $2.2 million to allegedly finance various Gold Coast property developments.
Kennedy did not enter a plea and he has not applied for bail. He may also face 11 alternative charges under the Corporations Act 2001 of dishonest conduct involving a financial service or product.
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