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 expenses.
Key Takeaways
- Jerald Benjamin Clawson, 74, arrested for real estate investment fraud.
- Scheme involved Ponzi-style tactics and unregistered securities.
- Victims’ money allegedly used for personal gain.
- Clawson has a history of similar SEC violations.
The Alleged Scheme
The FDLE’s investigation into Clawson began in October 2023 after receiving information that he was soliciting cash and bridge loans for real estate investments, promising investors a guaranteed return. However, investigators found that investors never received any returns, as Clawson allegedly diverted the funds for his personal use. The FDLE stated that "several million dollars" were obtained through this scheme. The investigation was a collaborative effort involving the FDLE, the Florida Office of Financial Regulation, and the Seminole County Sheriff’s Office. Clawson was apprehended on August 28 in Winter Park, Florida, and is currently being held at the Orange County Jail.
A Pattern of Fraud
This is not Clawson’s first encounter with the law regarding fraudulent activities. In 2001, the Securities and Exchange Commission (SEC) implicated Clawson in a fraud scheme involving the offer and sale of unregistered securities. This earlier 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 penalties for his involvement in that fraud.
Related Real Estate Fraud Cases in Florida
Clawson’s arrest highlights a concerning trend of real estate investment fraud in Florida. Recent cases include:
- Brian Davison, a Florida real estate investor, was sentenced to three years in federal prison for filing false tax returns, underreporting his income by approximately $29.7 million, resulting in a tax loss of $6.29 million.
- Felipe Souza, 27, of Boca Raton, was arrested for a scheme that defrauded 16 investors of over $410,000 by promising exorbitant returns on non-existent real estate deals. Funds were allegedly used for personal expenses.
- Ybis Del Carmen, 55, faces charges of organized fraud and grand theft for allegedly defrauding a man of over $1.6 million through fraudulent real estate transactions in Miami-Dade County, with the stolen funds reportedly used for personal reasons.
These cases underscore the importance of due diligence when investing in real estate and the need for regulatory oversight to protect investors from fraudulent schemes.
Sources
- 74-Year-Old Florida Man Arrested in Real Estate Investment Fraud Scheme, Weekly Real Estate News.
- Florida Real Estate Investor Sentenced for $6.29 Million Tax Fraud, Weekly Real Estate News.
- Boca Raton man nabbed for $410K real estate scam, duping 16 investors, WPEC.
- Woman defrauds man of over $1.6M with promises of Miami-Dade real estate investment, WPLG Local 10.