Queensland Court Freezes Assets, Revokes Passport Of Collapsed Firm's Founder

Vanessa Doctor

30 September 2013

The Supreme Court of Queensland has ordered the surrender of the passport of LM Investment Management founder went into administration in March 2013, with the company responsible for managing at least A$750 million ($698 million) on behalf of almost 12,000 investors in the country and overseas. ASIC's investigation into the collapse looking at the conduct of the directors and the management of the various schemes and transactions with related companies.

In addition to taking Drake's passport, the court also ordered the freezing of his assets while the investigation is ongoing. This also prevents him from selling his assets, although this does not extend to the intended sale of his Mermaid Beach, Queensland home, said the ASIC in a statement.

The surplus of the sale proceeds from the sale of this home will go to Drake's solicitor's trust account and cannot be used unless by order of the court or the ASIC.

The matter will return to the Supreme Court on 9 October 2013.