A 74-year-old Florida man, Jerald Benjamin Clawson, has been arrested and charged with organized scheme to defraud and unlawful use of unregistered securities in connection with a Ponzi-style real estate investment fraud. The Florida Department of Law Enforcement (FDLE) led the investigation, which revealed that Clawson allegedly solicited investments with promises of guaranteed returns, but instead used the funds for personal use, defrauding investors out of "several million dollars."
Key Takeaways
- Jerald Benjamin Clawson, 74, arrested for real estate investment fraud.
- Accused of running a Ponzi-style scheme, defrauding investors out of millions.
- Clawson has a prior history with the Securities and Exchange Commission for similar fraudulent activities.
- The investigation involved multiple state and local law enforcement agencies.
The Fraudulent Scheme
The FDLE’s investigation into Clawson began in October 2023 after receiving complaints that he was soliciting real estate investments through cash and bridge loans. Investors were promised guaranteed returns, but their money was allegedly used for personal expenses, and no returns were ever provided. The FDLE stated that "several million dollars" were obtained through this scheme.
The investigation was a collaborative effort between the FDLE, the Florida Office of Financial Regulation, and the Seminole County Sheriff’s Office. Clawson was taken into custody on August 28 in Winter Park, Florida, and is currently being held at the Orange County Jail.
A Pattern of Deception
This is not Clawson’s first encounter with the law regarding financial fraud. In 2001, the Securities and Exchange Commission (SEC) identified Clawson as part of a fraud scheme involving the offer and sale of unregistered securities. That scheme, related to pay telephone leasebacks through Phoenix Telecom LLC, raised over $74 million from more than 2,000 investors, many of whom were elderly. Clawson was subsequently ordered to pay disgorgement and other relief for his involvement in that case.
Related Real Estate Investment Concerns
In separate but related news, a 27-year-old Boca Raton man, Felipe Souza, was arrested for a "bait and switch" scheme that defrauded 16 investors out of more than $410,000. Souza, operating under FAS Creative Concepts LLC, promised exorbitant returns on non-existent real estate deals. The Florida Office of Financial Regulation (OFR) investigation revealed that Souza collected funds by providing false information, with a significant portion of the money being transferred to Michael Campbell, who was presented as a business associate. Neither Souza nor Campbell were licensed to sell securities or real estate in Florida, and investor funds were reportedly used for personal expenses.
Additionally, a lawsuit filed in Miami accuses real estate investment firms Silverstein Capital Partners and Monarch Alternative Capital of conspiracy, civil misconduct, and predatory lending in a dispute over a $32 million loan for the Legacy Miami Worldcenter skyscraper. The lawsuit alleges that these firms attempted to sabotage the project by orchestrating a foreclosure through a shell corporation and charging illegally high interest rates, exceeding 45 percent, which is a felony under Florida law.
Sources
- 74-Year-Old Florida Man Arrested in Real Estate Investment Fraud Scheme, Weekly Real Estate News.
- Boca Raton man nabbed for $410K real estate scam, duping 16 investors, WPEC.
- Major Real Estate Investment Firms Face Accusations with, GlobeNewswire.