Clark D. East, a 59-year-old developer from Sugarland, TX, has pleaded guilty to embezzlement from a bankruptcy estate. According to the plea agreement, East faces a maximum penalty of five years in federal prison.
The case began when East obtained a loan from Stearns Bank, a member bank of the Federal Home Loan Bank of Minneapolis, to develop a property located at 3700 Ulmerton Road Plaza in Clearwater. However, East defaulted on the loan, and Stearns Bank obtained approval to sell the property at foreclosure on March 27, 2012.
In an attempt to avoid foreclosure, East filed for bankruptcy protection with the United States Bankruptcy Court for the Middle District of Florida through his company, 3700 Ulmerton Road, LLC, the day before the scheduled foreclosure sale. During the bankruptcy proceedings, East was ordered to sell the property and to remit $1.2 million in sales proceeds to Stearns Bank.
However, instead of repaying Stearns Bank, East embezzled approximately $800,000 of proceeds that were part of the bankruptcy estate and due to Stearns Bank. This blatant disregard for the law and the bankruptcy process has resulted in East’s guilty plea and potential imprisonment.
The investigation into East’s embezzlement was conducted by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The Office of the United States Trustee for the Middle District of Florida, Tampa Division also provided substantial assistance in the case.
The case is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay G. Trezevant. Acting United States Attorney W. Stephen Muldrow announced East’s guilty plea, emphasizing the importance of holding individuals accountable for their actions, particularly when it comes to financial crimes.
The guilty plea of Clark D. East serves as a reminder that embezzlement from a bankruptcy estate is a serious crime with significant consequences. As East faces up to five years in federal prison, it is clear that the justice system will not tolerate such blatant disregard for the law. The case will now move forward to sentencing, where East will learn his fate.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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