A 74-year-old Florida man has been arrested in connection with a sophisticated real estate investment fraud scheme. Authorities allege he defrauded multiple investors out of millions of dollars by promising guaranteed returns on real estate ventures, only to use the funds for personal expenses. This marks a repeat offense for the suspect, who was previously involved in a similar large-scale investment fraud.
Key Takeaways
- A 74-year-old Florida man, Jerald Benjamin Clawson, was arrested for organized scheme to defraud and unlawful use of unregistered securities.
- The scheme operated like a Ponzi scheme, with investors promised guaranteed returns that were never delivered.
- Clawson allegedly used victims’ money for personal use, with "several million dollars" reportedly obtained.
- This is not Clawson’s first brush with the law; he was previously implicated in a 2001 fraud involving unregistered securities that defrauded over 2,000 investors.
The Alleged Scheme
The Florida Department of Law Enforcement (FDLE), in collaboration with the Florida Office of Financial Regulation and the Seminole County Sheriff’s Office, initiated an investigation into Jerald Benjamin Clawson in October 2023. The investigation revealed that Clawson was soliciting real estate investments through cash and bridge loans, promising investors a guaranteed return. However, these returns never materialized as Clawson allegedly diverted the investors’ funds for his personal use.
The FDLE stated that the depth of the fraud involved "several million dollars." Clawson was apprehended on August 28 in Winter Park, Florida, and is currently being held at the Orange County Jail.
A Pattern of Deception
This is not the first time Clawson has faced legal repercussions for fraudulent activities. In 2001, the Securities and Exchange Commission (SEC) identified Clawson as part of a fraud scheme involving the sale of unregistered investment contracts related to pay telephone leasebacks through Phoenix Telecom LLC. This earlier scheme raised over $74 million from more than 2,000 investors, many of whom were elderly. Clawson was subsequently ordered to pay disgorgement and other penalties for his role in that operation.
Related Case: Boca Raton Real Estate Scam
In a separate but related incident, a 27-year-old Boca Raton man, Felipe Souza, was arrested for a "bait and switch" real estate scam that defrauded 16 investors of over $410,000. Souza, through his company FAS Creative Concepts LLC, promised investors returns ranging from 200% to 338% with a 100% money-back guarantee. Investors were told their funds would be used to buy and flip properties. However, investigations revealed that Souza used the money for personal expenses like utilities and travel, while a significant portion was 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. Souza faces charges including multiple counts of selling unregistered nonexempt securities and defrauding to obtain property.
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.