MIAMI, FL (June 25, 2014) — Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Fred Davis Clark, Jr., a/k/a Dave Clark, 56, and Cristal R. Clark, a/k/a Cristal R. Coleman, 41, were charged with obstruction of the U.S. Securities and Exchange Commission (SEC), and with wire fraud and conspiracy to commit wire fraud. Fred Davis Clark and Cristal Clark, both United States citizens and former residents of Monroe County, were apprehended with the assistance of foreign law enforcement earlier this week. Fred Davis Clark was apprehended while transiting from Honduras to Panama, and Cristal Clark was apprehended in Honduras. Both were returned to the United States with the assistance of the U.S. Marshal’s Service (USMS). Fred Davis Clark made his initial appearance in Key West before U.S. Magistrate Judge Lurana Snow.
According to the indictment, Fred Davis Clark and Cristal Clark were former executives of Cay Clubs Resorts and Marinas (Cay Clubs), which raised more than $300 million from approximately 1,400 investors through the sale of vacation rental units in Florida and elsewhere. Fred Davis Clark and Cristal Clark operated the company from an office in Key Largo. After the collapse of Cay Clubs, the SEC began an investigation into allegations of fraud at Cay Clubs. According to the indictment, Fred Davis Clark and Cristal Clark engaged in conduct aimed at concealing the location of assets under their control, and Fred Davis Clark gave false and misleading testimony to the SEC in connection with its investigation.
Furthermore, after the collapse of Cay Clubs, Fred Davis Clark and Cristal Clark initiated another venture to operate pawn shops in the Caribbean. According to the indictment, using the same bank accounts and shell companies based in Key Largo that they controlled during their Cay Clubs activities, Fred Davis Clark and Cristal Clark engaged in fraud and theft of funds from CMZ Group, LTD, a Cayman Islands company that operated pawn shops in the Caribbean. According to the indictment, Fred Davis Clark and Cristal Clark obtained money and property from CMZ Group, LTD, by siphoning off funds from the business operations of CMZ Group, so that the defendants could lead a lavish lifestyle.
Furthermore, in or around January 2013, shortly before an action was brought by the SEC alleging that they committed securities fraud, the indictment alleges, Fred Davis Clark and Cristal Clark caused the transfer of nearly $2 million to a bank account they controlled in Honduras for the purpose of preventing the SEC from learning the source, nature, location and control of these monies.
Mr. Ferrer commended the investigative efforts of ICE-HSI and IRS-CI, and the assistance of the SEC Miami Regional Office and the USMS in this matter. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.