A 74-year-old Florida man, Jerald Benjamin Clawson, has been arrested in connection with a sophisticated real estate investment fraud scheme. The Florida Department of Law Enforcement (FDLE) announced the charges, which include organized scheme to defraud and the unlawful use of unregistered securities, alleging a Ponzi-style operation that defrauded investors of "several million dollars." Clawson is accused of soliciting 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.
- Accused of running a Ponzi-style scheme, defrauding investors of millions.
- Clawson has a prior history with the Securities and Exchange Commission for similar fraud.
- Another case involves Felipe Souza, 27, who defrauded 16 investors of over $410,000.
The Scheme Unveiled
The FDLE’s investigation into Clawson began in October 2023 after receiving information that Clawson was soliciting cash and bridge loans for real estate investments, promising investors a guaranteed return. However, the investigation revealed that Clawson diverted the investors’ money for his personal use, leaving the investors without any returns.
The FDLE, in collaboration with the Florida Office of Financial Regulation and the Seminole County Sheriff’s Office, conducted the investigation. 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 sale of unregistered securities through Phoenix Telecom LLC. That scheme, which involved pay telephone leasebacks, 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.
Another Real Estate Scam Surfaces
In a separate but related incident, 27-year-old Felipe Souza of Boca Raton has been arrested for a "bait and switch" real estate scam that defrauded 16 investors out of more than $410,000. The Florida Office of Financial Regulation (OFR) initiated an investigation in November 2022 following complaints to the SEC about Souza’s business, FAS Creative Concepts LLC. Souza allegedly promised investors returns between 200% and 338% with a 100% money-back guarantee, claiming to need funds for buying and flipping properties.
Bank records indicate that Souza collected $413,800 from investors between February 2021 and January 2022. He returned only $62,600, leaving an outstanding balance of $351,200. A significant portion of the funds was transferred to Michael Campbell, who was presented as a successful businessman. Neither Souza nor Campbell were licensed to sell securities or real estate in Florida, and the funds were reportedly used for personal expenses by both individuals.
Souza faces charges including sixteen counts of selling unregistered nonexempt securities and one count of defrauding to obtain property valued over $50,000.