Clark D. East, 59, of Sugarland, TX, is staring down federal prison time after being indicted on charges of embezzling $828,854.66 from a bankruptcy estate tied to a failed Clearwater development project. The indictment, unsealed in Tampa, Florida, marks the latest fallout from a scheme that brazenly defied court orders and gutted a financial institution’s recovery effort.
According to federal prosecutors, East secured a loan from Stearns Bank—member of the Federal Home Loan Bank of Minneapolis—to develop property at 3700 Ulmerton Road Plaza in Clearwater. When he defaulted, the bank moved in for a foreclosure sale scheduled March 27, 2012. One day prior, East filed for bankruptcy through his shell company, 3700 Ulmerton Road, LLC, halting the sale and buying time to game the system.
The bankruptcy court didn’t grant East a free pass. It ordered him to sell the property and turn over $1.2 million in proceeds directly to Stearns Bank. Instead, East treated the estate like a personal piggy bank. He siphoned off $828,854.66—money explicitly due to the bank—and vanished it into his own financial web.
Investigators say the embezzlement wasn’t a mistake or mismanagement—it was deliberate theft. The funds, legally protected under federal bankruptcy law, belonged to the estate and were meant to satisfy creditor claims. East, as fiduciary, had a sworn duty to comply. He chose greed over obligation.
The case was jointly investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General, with critical support from the Office of the United States Trustee for the Middle District of Florida, Tampa Division. Their probe peeled back layers of financial obfuscation to expose East’s breach of trust.
Now, East faces a maximum penalty of five years in federal prison if convicted. Prosecution is being handled by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay G. Trezevant. An indictment is not a conviction—East is presumed innocent until proven guilty in a court of law. But the paper trail, prosecutors say, tells a damning story.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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