Australia’s consumer watchdog has launched a Federal Court case against an investor in purpose-built, NDIS-compatible property development schemes over allegations of the misappropriation of investment funds.
David McWilliams and several of his companies, including Gold Coast-headquartered ALAMMC Developments, were named as defendants in a case brought by the Australian Securities and Investments Commission this month.
According to Federal Court documents, ASIC was first alerted to McWilliams’ activities in July, 2024 based on information from the Queensland Office of Liquor and Gaming Regulation.
The gambling regulator told ASIC about McWilliams’s gambling activities, and the fact that he had lost significant sums of money at the Star Casino.
In a judgement transcript, ASIC said it suspected that the gambled funds were sourced from investments made by investors in a number of businesses operated by the corporate defendants, and that they had been misappropriated for this purpose.
“There is evidence of numerous transfers of funds, including potential investor funds, between accounts held by different defendants, as well as the potential use of investor funds to purchase a luxury motor vehicle, and real estate at Surfers Paradise in Queensland,” the court judgement said.
In July, prior to bringing the case to court, ASIC had started an investigation into the conduct of the defendants which was “conducted covertly”.
“The steps that ASIC now wishes to take will likely bring the investigation to the defendants’ attention,” court files said.
McWilliams and his companies were ordered to be subject to asset protection orders, which effectively freeze his assets and prevent their removal or sale.
ASIC also requested a disclosure order, in which all assets are inventoried and any funds with financial or gambling institutions are disclosed.
While the defendant did not appear in court, Federal Court Judge Yates said that they were prepared to make the disclosure orders ASIC seeks, and ban McWilliams from leaving or attempting to leave Australia for one month.
The case is expected to go before the court before the end of the year.
David McWilliams is named on the ALAMMC Developments website as a managing director with 30 years’ experience, including as vice chief financial officer of a major mining company and as having experience in the construction and finance industries.
“His experience within these organisations covers investments and developments from commercial to residential,” his website said.
Most projects listed on the ALAMMC website are older NDIS projects in locations including Coogee in NSW and North Fremantle in WA.
ALAMMC was most recently associated with a NDIS-supported development at Tamworth earlier this year that would have delivered 16 “state-of-the-art” townhouses at 96 Coonan Street in the regional NSW town.
McWilliams is also listed as the founder and chief executive of Harvey Madison Capital Pty Ltd, based at Bundall on the Gold Coast, which, alongside several ALAMMC and SDMAF companies, include Mortgage Mutual Fund Pty Ltd and Coral Coast Mutual Fund Pty Ltd.
ALAMMC was contacted for comment.
