Archives For Caye Club

Fred Davis Clark, Jr., a/k/a Dave Clark, 57, formerly of Monroe County, Florida, the former Cay Clubs Chief Executive Officer was sentenced to 40 years in prison for his participation in a $300 million dollar vacation rental fraud scheme.  Clark was convicted on December 11, 2015 after a five-week trial, of three counts of bank fraud, and three counts of making a false statement to a financial institution, all in connection with a $300 million dollar fraud scheme involving sales of vacation rental units.  The scheme involved sales at Cay Clubs Resorts and Marinas (Cay Clubs), to approximately 1,400 investors in the Florida Keys and elsewhere.  Clark also was convicted of obstruction of the U.S. Securities and Exchange Commission (SEC), in connection with the SEC’s efforts to investigate his conduct related to Cay Clubs.  Clark was sentenced to 480 months’ imprisonment and the Court entered forfeiture money judgments against Clark, including in the amount of $303,800,000 for the bank fraud and $3,300,000 for the SEC obstruction.  In addition, the Court ordered forfeiture of specific assets, located overseas, totaling approximately $2.6 million dollars.

Clark filed an appeal on February 25, 2016. Continue Reading…

Fred Davis Clark, Jr., a/k/a Dave Clark, 57, formerly of Monroe County, Florida, was convicted after a five week trial, of three counts of bank fraud, and three counts of making a false statement to a financial institution, all in connection with a $300 million fraud scheme involving the sale of vacation rental units involving Cay Clubs Resorts and Marinas (Cay Clubs), to approximately 1,400 investors in the Florida Keys and elsewhere.  Clark also was convicted of obstruction of the U.S. Securities and Exchange Commission (SEC), in connection with the SEC’s efforts to investigate his conduct related to Cay Clubs.

According to evidence submitted in court, Clark was the Chief Executive Officer of Cay Clubs, which operated from 2004 through 2008 from offices in the Florida Keys and Clearwater.  Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States.  Cay Clubs raised more than $300 million from investors by promising to develop dilapidated properties into luxury resorts, and promising investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing.  Evidence at trial showed that, in reality, Cay Clubs never developed the properties it had promised to investors and that they remained in a dilapidated condition.  Continue Reading…

Couple’s trial opens in $300M vacation rental fraud case

A federal trial began Wednesday for a married couple accused of orchestrating a $300 million fraud involving thousands of investors who were promised big profits by purchasing dilapidated properties in the Florida Keys and elsewhere that would be transformed into luxurious resorts.

 Instead, prosecutors say Fred Davis “Dave” Clark Jr., former president of now-defunct Cay Clubs Resorts and Marinas, and Cristal Clark, a top sales agent, defrauded banks and about 1,400 individual investors through a series of misleading marketing materials and false statements. The investors in some cases were promised quick returns of 15 to 20 percent, according to court documents.