Barry J. Graham, $300 Million Ponzi Scheme, Florida 2024
Florida Man Charged in $300 Million Ponzi Scheme
A Florida man has been charged in connection with a $300 million Ponzi scheme involving the sale of vacation rental units to approximately 1,400 investors in the Florida Keys and elsewhere.
Barry J. Graham, 59, of Ft. Myers, was charged by superseding information with conspiracy to commit bank fraud, in violation of Title 18 United States Code, Section 371.
Cay Clubs Resorts and Marinas (Cay Clubs) 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.
Graham was the Director of Sales for Cay Clubs from 2004 through late 2007. According to the superseding information, Graham conspired with others to fraudulently inflate the prices of Cay Clubs units through insider sales.
Thereafter, these insider sale prices were used on marketing materials to make it appear to investors that the Cay Clubs units were rapidly increasing in price. Furthermore, the information alleges, as Cay Clubs experienced financial difficulties, Graham conspired with others to fraudulently market the Cay Clubs investment to new investors by making false and misleading statements.
The superseding information alleges that the defendants failed to disclose the leaseback payment and other financial inducements to the borrowers on paperwork submitted to lending institutions.
The case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An information is only an accusation and the defendant is presumed innocent until proven guilty.
Graham is currently facing charges and his status is pending before U.S. District Judge Jose E. Martinez in Key West.
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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