A 74-year-old Florida man has been arrested in connection with a sophisticated real estate investment fraud scheme that allegedly defrauded victims out of millions of dollars. Jerald Benjamin Clawson was taken into custody on August 28th in Winter Park, Florida, facing multiple felony charges including organized scheme to defraud and unlawful use of unregistered securities.
Key Takeaways
- Jerald Benjamin Clawson, 74, arrested for a Ponzi-style real estate investment fraud.
- Scheme allegedly defrauded at least 10 victims out of $5.3 million.
- Clawson previously involved in a similar SEC fraud case in 2001.
The Fraudulent Scheme
Jerald Clawson, operating under the guise of Azure Waterfront Consulting, LLC, and Azure Waterfront (Real Estate), LLC, allegedly pitched a "Fee-note Program" to investors. He promised exorbitant returns, ranging from 100% to 300%, on short-term real estate "hard money" and "bridge loans." Investors reportedly wired funds directly from their bank accounts, expecting these high returns. However, when the loans matured, Clawson allegedly failed to repay the investors, instead using their money for personal use.
Law Enforcement Investigation
The investigation, dubbed "Investment Blues," was a collaborative effort involving the Florida Department of Law Enforcement (FDLE), the Seminole County Sheriff’s Office, the Florida Office of Financial Regulation, and the Office of Statewide Prosecution. The FDLE began its investigation in October 2023 after receiving information that Clawson was soliciting investments with promises of guaranteed returns, which he failed to deliver.
Charges and Previous Offenses
Clawson faces multiple felony charges, including scheme to defraud greater than $50,000 and unlawful sale of fraudulent securities greater than $50,000, involving five or more victims. Each charge carries a potential sentence of up to 30 years in prison and a $10,000 fine. This is not Clawson’s first encounter with the law; in 2001, the Securities and Exchange Commission (SEC) named him in a fraud scheme involving unregistered securities related to pay telephone leasebacks. That scheme raised over $74 million from more than 2,000 investors, primarily elderly individuals, and resulted in Clawson being ordered to pay disgorgement and other relief.
Call for Additional Victims
Florida Attorney General James Uthmeier stated that Clawson "exploited the trust of hardworking Floridians to line his pockets" and continues to "prey on victims without remorse." Authorities are urging any additional victims who may have been defrauded by Clawson to come forward as the case remains active.
Sources
- 74-Year-Old Florida Man Arrested in Real Estate Investment Fraud Scheme, Weekly Real Estate News.
- 74-year-old ‘broker’ busted in $5.3M Ponzi scheme targeting Florida investors, WTVX.