The former president of a now defunct Florida-based resort and hotel was sentenced to 40 years in prison. The suspect was convicted of orchestrating a $300 million real estate Ponzi scheme.
According to Reuters, the chief executive of the foreclosed Cay Clubs Resorts and Marinas, Fred Clark, was sentenced at the Key West Florida court by US District Judge Jose Martinez. Clark who is 57 was convicted of bank fraud, creating false statements and obstruction of the Securities and Exchange Commission.
According to Attorney Wilfredo Ferrer, the sentence that was given to Clark was just enough to make him accountable for his extensive treachery and the harm he caused to other people. Based on the details of the complaints, Cay Clubs started its operation from 2004 up to 2008. This business venture attracted 1,400 investors in the US. They proposed 17 hotel locations in Florida, Las Vegas, and the Caribbean.
The testimonies of the complainants stated that Clark's scheme to get rich is through selling luxury condominiums that would be for renovation from older properties. But in reality, nothing was actually getting done, as reported by NBC Miami.
The company was able to raise $300 million dollars and promised its investors a 15-20 percent return based on their investment as well as income from future rental programs. The Cay Clubs never developed the properties as stated in the contract and used the proceeds to be able to pay out earlier investors that engaged in the deal. The prosecutors were also able to prove that Clark lived a lavish lifestyle while making $20 million in fraudulent mortgage transactions.
However, according to attorney Valentin Rodriguez, Clark was just following the advice from his attorneys together with the bank loan officers who were also eager for a commission on the sale, as per Keysnet.
The court though acquitted his wife Cristal Clark last August, long before the court gave its decision on the case of Fred. Meanwhile, two former Cay Clubs executives Barry Graham and Ricky Stokes pleaded guilty to the conspiracy committed against the banks and were sentenced to five years in prison.
