Related Federal Cases
Former CFO of Cay Clubs Resorts Charged with Bank Fraud and Tax Crimes
David W. Schwarz, 60, of Orlando, has been charged with conspiracy to commit bank fraud, bank fraud, false statements to a financial institution, and interference with the administration of the IRS, the US Department of Justice announced.
Schwarz, the former Chief Financial Officer of Cay Clubs Resorts and Marinas, was arrested earlier today in Orlando, Florida, on federal bank fraud and criminal tax offense charges.
The indictment alleges that Schwarz and co-conspirator Fred Davis Clark, Jr., a/k/a Dave Clark, began Cay Clubs in late 2004 with fraudulent sales of Cay Clubs units to insiders, using money from Cay Clubs’s bank accounts to fund the cash to close for purchases while obtaining mortgage financing from lending institutions.
The indictment further alleges that as Cay Clubs faced dwindling sales due to its failure to upgrade the dilapidated properties in 2006, Schwarz, Clark, and others engaged in additional fraudulent sales of Cay Clubs units to insiders, including Clark’s family members. Proceeds of these sales were diverted to Schwarz and Clark.
The indictment also alleges that during 2004 through 2008, Clark and Schwarz obtained more than $28 million in proceeds from the business, while Schwarz and Clark did not file any corporate tax returns for the Cay Clubs entities.
Schwarz faces a statutory maximum of 30 years in prison for each of the conspiracy and bank fraud offenses, and 3 years in prison for the tax offense, if convicted. The matter is assigned to Chief United States District Judge K. Michael Moore in Key West.
Fellow Cay Clubs executives have previously been convicted or pleaded guilty in related cases. Mr. Ferrer commended the investigative efforts of the IRS-CI and FHFA-OIG, and the extensive assistance provided by the SEC’s Miami Regional Office.
The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison Lehr. Related court documents and information may be found on the website of the District Court for the Southern District of Florida.
Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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