Childcare giant G8 cut unorthodox $26 million deal with Darren Misquitta's Genius despite warnings

The warnings lights were flashing for giant childcare operator G8 Education.

It had an unorthodox $26 million deal on the line to sell centres to Genius Education, a venture whose subsequent collapse would strand staff and parents, and whose boss Darren Misquitta would later plead guilty to receiving suspected proceeds of crime unconnected to the child care industry.

Despite G8 knowing about problems, an ABC investigation can reveal how the childcare giant downplayed concerns and maintained it had conducted checks.

Gold Coast-based G8 even passed on information packages detailing Genius's success to key stakeholders. It was replete with pictures of centres refurbished with sandpits, sunshades and climbing equipment, and glowing references from businessmen including Adrian "Lambo Guy" Po