A $300 million Ponzi scheme has landed some executives in hot water. According to The Miami Herald, "five former real former real estate executives" are accused of being involved in the $300 million Ponzi scheme.
On Wednesday, a civil complaint was filed in Miami federal court "against former Cay Club president and CEO Fred Davis Clark Jr., chief accounting officer David W. Schwarz, manager and sales agent Cristal R. Coleman, sales director Barry J. Graham and sales director Ricky Lynn Stokes."
The Securities and Exchange Commission accuses Cay Clubs Resorts and Marinas of taking the $300 million from almost about 1,400 investors with claims of purchases at Florida and Las Vegas resorts turning a profit. However the executives decided to use the new investments to pay off investors they had previously owed, and cash in on hefty salaries and commissions for themselves which totaled well over $30 million.
The complaint seeks financial penalties from Clark, Coleman and Stoke, and wants all five executives involved in the $300 million Ponzi scheme to "return of ill-gotten gains" they have received.
It looks like their fun in the sun is over.
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