Prevented from selling assets: Peter Drake. Photo: Louie Douvis
Embattled Gold Coast businessman Peter Drake has had his passport revoked and assets frozen during an ongoing investigation into the collapse of his LM Investment Management empire.
The Supreme Court of Queensland ordered Mr Drake to surrender his passport on Friday, following an application by the Australian Securities and Investments Commission.
The court orders also prevent Mr Drake from selling any assets he holds, excluding his Mermaid Beach, Queensland home, which is expected to be sold this weekend, the regulator said.
Surplus sale proceeds from the home will go to Mr Drake’s solicitors’ trust account and cannot be used unless by order of the court or the regulator.
LM Investment Management collapsed in March, owing 12,000 investors in Australia and overseas $750 million.
ASIC suspended Mr Drake’s financial services licence for two years in April, making it impossible for administrators to hand the business back to the company’s directors, as had been earlier suggested.
The regulator is investigating the conduct of the directors and loans to related companies in the lead up to the collapse.
Property receivers William Fletcher and Tracy Knight of Bentleys will identify and secure assets held by or on behalf of Mr Drake and report to them to the court, ASIC said.
The matter is expected to return to court on October 9.