Drake's woes continue as court revokes passport, freezes assets

Embattled Gold Coast businessman Peter Drake has had his passport revoked and assets frozen during an investigation into the collapse of his LM Investment Management empire.

Embattled Gold Coast businessman Peter Drake has had his passport revoked and assets frozen during an 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 home, which is expected to be sold this weekend, the regulator said.

Surplus sale proceeds from the home cannot be used unless by order of the court or the regulator.

LM Investment Management collapsed in March, owing $750 million to 12,000 investors in Australia and overseas.

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.

The regulator is investigating the directors' conduct and loans to related companies. Property receivers William Fletcher and Tracy Knight of Bentleys would identify and secure assets held by or for Mr Drake and report them to the court, ASIC said.

The matter is expected to return to court on October 9.

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