Former Gold Coast developer, David Elliot Kennedy, has been committed to stand trial in the Brisbane District Court over a scheme that raised approximately $2.2 million from Australian investors.

Mr Kennedy, 44, appeared in the Brisbane Magistrates’ Court on Friday 18 March on 11 counts laid by ASIC of dishonestly obtaining a benefit of $728,000 under section 408C(1)(d) of the Criminal Code (Qld) and one count of carrying on an unlicensed financial services business.

Mr Kennedy did not enter a plea. The alternative 11 charges under the Corporations Act 2001 of dishonest conduct involving a financial service or product were not dealt with at this time.

ASIC alleges that First Foundation Developments Limited and Mr Kennedy offered securities in an unregistered managed investment scheme between October 2002 and April 2003. At the time, the scheme raised approximately $2.2 million from members of the public to allegedly finance various Gold Coast property developments.

Mr Kennedy has been in custody in Australia since his extradition from the United States of America (USA) in December 2010. He did not apply for bail. The matter will return to court on a date to be fixed.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Background

Mr Kennedy had been incarcerated in the USA for fraud on an unrelated matter since July 2005. He completed that sentence on 24 November 2010 and remained in custody in the USA pending handover to Australian authorities.