Superseding Indictment

UNITED STATES DISTRICT COURT
SO UTH ERN DISTRICT O F FLO RIDA

CASE NO. 13-10034-CR-JEM (s)
18 U.S.C. j 1349
18 U.S.C. j 1344
18 U.S.C. j 1341
18 U.S.C.j 1512(c)(2)
18 U.S.C. j 2
18 U.S.C. j 981(a)(1)(C)
UNITED STATES OF AM ERICA
VS.
FRED DAVIS CLARK, JR.,
a/k/a sDave Clark,'' and
CRISTAL R. CLARK,
a/k/a ddcristal R. Coleman,''
Defendants.
/
SUPERSEDING INDICTM ENT
The Grand Jury charges that:
GENERAL ALLEGATIONS
At times material to this Superseding lndictment:
From in or around November 2004,through in or around July 2008
, Cay Clubs
Resorts and Marinas ($Cay Clubs'') raised more than $300 million from approximately 1,400
investors through the sale of units in purported luxury resorts nationwide
,
including in the
Florida Keys. Defendant FRED DAVIS CLARK, JR. was the President of Cay Clubs and had
authority over its use of funds. Defendant CRISTAL R. CLARK was a m anaging m ember
,
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SEPT 16, 2014
Case 4:13-cr-10034-JEM Document 65 Entered on FLSD Docket 09/17/2014 Page 1 of 25
manager, and registered agent of certain Cay Clubs entities, and served as a sales agent for Cay
Clubs.
2. Cay Clubs arranged and facilitated lender financing for investors to borrow ftmds
from a lending institution to purchase the units. As the seller of the units, Cay Clubs would also
arrange for real estate closings. Through its attorneys and agents, including S.C. and C.P., Cay
Clubs would submit paperwork to the lenders in order to receive loan proceeds.
3. A HUD-I Settlement Statement (SIHUD-I Statemenf') was a standard form
required to be executed for the closing of all real estate transactions. The HUD-I Statements
were required to itemize all aspects of the closing for the lender, including payments made by the
borrower, credits or financial inducements provided to the bonower, money due to the seller, and
fees paid to third parties in cormection with the closing.
4. JpMorgan Chase Bank, N.A.(tiJPMorgan''), Wachovia Bank CWachovia'),
Wells Fargo Bank, N.A.(16We1ls Fargo''), SunTrust Bank (%1SunTrust''), Fifth Third Bank, N.A.
(sFifth Third'), and Orion Barlk were tsnancial institutions with offices in Florida and elsewhere,
and whose accounts were insured by the Federal Deposit lnsurance Corporation (11FDIC'').
CMZ Group, LTD, was a Cayman Islands company, and along with its affliates,
including CashWiz Holdings,LTD and Island Elements, Cl,LTD (collectively, $CMZ''),
operated pawn shops in the Caribbean and generated revenue by, among other things, the
smelting of gold and other precious metals purchased by the pawn shops. FRED DAVIS
CLARK, JR. was a principal in CMZ and its predecessor entities from at least in or around
October 2010, through in or around January 2013.
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6. Cristal Clear Charters, LLC (%CCC''),was a Florida limited liability company
with a barlk account at Bank of America (tiBofA'') in Key Largo, Florida, ending in x1973.
CRISTAL R. CLARK was the listed manager of CCC.
DC6, LLC ($1DC6''), was a Florida limited liability company with a bank account
at BofA in Key Largo, Florida, ending in x2558. CRISTAL R. CLARK was the listed
manager of DC6.
8. Funds generated during the operation of Cay Clubs, and later,during the
operation of CM Z, were deposited into the CCC and DC6 bank accounts which were controlled
by FRED DAVIS CLARK, JR. and CRISTAL R. CLARK.
9. On or about M ay 1 3,201 1, the U.S.Securities and Exchange Commission
(iSEC''), as part of ofticial investigation number No. FL-03343 into alleged securities fraud at
Cay Clubs, took the deposition of FRED DAVIS CLARIG JR. at the SEC'S offices in Miami,
Florida. FRED DAVIS CLARK, JR., who was then residing in the Cayman Islands
, testified
conceming his income and the location of any bank accounts, funds or assets within his
possession,custody or control.
10. On or about January 30, 2013,the SEC filed a civil fraud action in the Southern
Distrid of Florida styled SEC v,Barry J Graham,et al., No. 13-1001 I-CV-JLK (the SSEC
Fraud Action''), in which FRED DAVIS CLARK, JR. and CRISTAL R.CLARK were nmned
defendants and, among other things, were alleged to have unjustly enriched themselves through
their participation in a securities fraud schem e at Cay Clubs. At approximately the same time
as the filing of the SEC Fraud Actiom FRED DAVIS CLARK, JR. separated from the CM Z
business pursuant to an agreement in which CM Z agreed to pay him nearly $5 million in
installments.
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1 1. Beginning on or about January 3 1
,
2013, and continuing through at least in or
around April 2013, FRED DAVIS CLARK, JR
. caused a series of funds transfers from the
Cayman Islands to third party accounts in the Republic of Honduras
, and elsewhere, including a
sum of $1,699,675 on or about April 22, 2013
,
to a bank account in the name of a company
controlled by FRED DAVIS CLARK, JR
. at Banco Davivienda, ending in x461 1
,
in Roatan,
Honduras.
COUNT 1
Conspiracy to Commit Bank Fraud
(18 U.S.C. 5 1349)
1 . Paragraphs 1 through 9 of the General Allegations section of this Superseding
Indictment are re-alleged and incorporated herein by reference
.
and continuing until at least in or
around M ay, 201 1, in M onroe County
,
in the Southern District of Florida
, and elsewhere, the
defendants,
Begirming in or around November
,
2004,
a/lda dDave Clark,'' and
CRISTAL R. CLARK,
a/k/a ficristal R. Colem an,''
did willfully, that is, with the intent to further the object of the conspiracy
,
and knowingly
combine, conspire, confederate
,
and agree with each other and others known and unknown to the
Grand Jury to commit an offense against the United States
, that is, to knowingly, and with the
intent to defraud,execute and cause the execution of a scheme and artifice to obtain an
y of the
moneys, funds, credits, assets, securities
, and other property owned by
, and under the custody
and control of, one or more financial institutions
,
including JP M organ,W achovia
, W ells Fargos
SunTrust, Fifth Third and Orion Bank
, by means of false and fraudulent pretenses
,
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representations, and promises relating to a material fact
,
in violation of Title 18
, United States
Code, Section 1344(2).
PURPOSE OF THE CON
- SP-IM - CY
lt was a purpose of the conspiracy for the defendants and their conspirators to
unlawfully emich themselves by misleading and defrauding investors and lending institutions
,
and obtaining money from investors as well as the proceeds of fraudulently obtained bank loans
for themselves and third parties and for their personal use and benefit
.
M ANNER AND M EANS OF THE CONSPIRACY
The marmer and means by which the defendants and their conspirators sought to
accomplish the object and purpose of the conspiracy included, among others
,
the following:
4. FRED DAVIS CLARK, JR
. and CRISTAL R. CLARK, along with their
conspirators, would create numerous corporate entities and bank accounts for these entitie
s.
The conspirators would operate these entities as though they were one entity using the n
am e
lscay Clubs.'' FRED DAVIS CLARK
, JR. and CRISTAL R. CLARK would have their
support staff listed as signatories or account holders on bank accounts
, and keep FRED DAVIS
CLARK, JR.'s name off of bank accounts so they could conceal his control ove
r funds.
FRED DAVIS CLARK, JR. and CRISTAL R
. CLARK would operate Cay Clubs from offices
located in the Florida Keys
, among other places.
FRED DAVIS CLARK, JR
.
conspirators, would engage in insider sales of units in Cay
and CRISTAL R. CLARK, along with their
Clubs real estate developments
.
That is, a Cay Clubs entity would purchase a unit from a third party and simultaneou
sly sell the
same unit at an increased price to a Cay Clubs insider
. ln those insider sales
, CRISTAL R.
CLARK, using the name ifcristal R
. Colemans'' and conspirator B
.G., would buy units from Cay
Clubs at a dramatically increased price on the same day that Cay Clubs purchased th
e units from
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a third party. CRISTAL R. CLARK would obtain bnnk financing for the purchase of such
units, but would not disclose to the lending institutions that she had a financial and ownership
interest in the selling entity. Through the insider sales
,
CRISTAL R. CLARK and other
conspirators would artificially intlate prices of the Cay Clubs units in order to get the proceeds of
larger bank loans for the units and to set bencbmarks that would be used for future marketing and
price comparisons.
6. The conspirators caused the creation and distribution of marketing materials that
contained false and misleading statements in order to induce investors to purchase units
. The
false and misleading marketing materials included an llAppreciation Analysis'' that did not
disclose that many of the listed purchases and sales involved insider sales
. The false and
misleading Appreciation Analysis was used to promote an earlier Cay Clubs
induce new investors for subsequent Cay Clubs projects.
Appreciation Analysis that pertained to an earlier Cay Clubs project in Cleam ater
, Florida would
be included in marketing materials sent to potential investors in the Florida Keys
, and elsewhere,
project and to
For example, the false and misleading
in relation to the later Lighthouse and Sombrero Cay Clubs projects in Marathon
,
Florida.
7. FRED DAVIS CLARK, JR. and CRISTAL R
. CLARK, along with their
conspirators,would also make false representations to investors and through marketing materials
that Cay Clubs would upgrade the units
, provide amenities and furniture packages for the
proprties, and convert the decaying properties into luxury resorts
. ln truth, for numerous Cay
Clubs properties Cay Clubs did not have adequate financing to make the promised
improvements, could not have rented the units for an amount equal to the leaseback p
aym ents,
and did not have the legal ability to rent the units at some of the properties
.
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8. The false representations FRED DAVIS CLARK
, JR. and CRISTAL R.
CLARK made and caused others to make to investors included rep
resentations in marketing
materials that Cay Clubs would allow investors to iRetire Rich and Y
oung in Paradisel,'' and
that a Cay Clubs investment involved tibuilt in equity
,'' tiimmediate income
s'' and came with an
k'exit strategy.'' The marketing mattrials also falsely promoted the l
easeback payment as a 1124
M onth Fixed lncome Rental Agrvement M ade At Closing
,'' with a 412 Year Fixed Income 20% of
Purchase Price'' that was to be ftpaid at the Closing Table
,'' for what was promised to be a l-f'urn
Key 4-5 Star Resort
.'' These false promises were made to investors with regard to dil
apidated
properties for which Cay Clubs did not have the financial ability t
o make the promised
improvements
.
9. Through sales agents located in the Florida Keys and els
ewhere,Cay Clubs made
promises to investors that a purchase of a unit in a Cay Clubs property
would generate returns to
the investor. Cay Clubs promised investors they would receive
a lleaseback'' payment in
exchange for purchasing a unit
, which would be a return to the investor of 15% to 20% of the
purchase price. This payment would be paid to the investor at the ti
me of the purchase or
shortly thereafter.
10. As Cay Clubs began to experience serious tinancial diffi
culties in 2007, FRED
DAVIS CLARK, JR. and CRISTAL R
. CLARK, and their conspirators at Cay Clubs did not
have sufscient funds to make the leaseback payments and other fin
ancial commitments that had
already been promised to earlier investors
, including from 2004
, 2005, and 2006. Cay Clubs
had to sell more units and obtain the proceeds of more bank fi
nancings to prevent Cay Clubs
from cpllapsing. Even though it was apparent by 2007 th
at Cay Clubs could not meet its
financial commitments and could not implement improvements t
o the properties that would be
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required to convert them into luxury resorts, FRED DAVIS CLARK, JR. and Cay Clubs salts
agents and employees under his direction continued to falsely and fraudulently represent to
investors that Cay Clubs was financially strong.
By at least 2007, when Cay Clubs did not have the financial resources to make
improvements to properties or to make promised leaseback payments to earlier investors
,
Cay
Clubs would use the proceeds of sales to new investors to make incremental leaseback payments
to older investors and incremental property improvements for older projects that were unrelated
to the new investor purchases.
Cay Clubs would have collapsed.
W ithout obtaining the loan proceeds from new investor sales
,
ln this way, Cay Clubs canie to operate as a Ponzi Scheme.
Once an investor agreed to purchase a Cay Clubs unit
, Cay Clubs would arrange
for lending financing and for the real estate closing through its attorneys and closing agents
,
induding eonspirators S.C. and C.P.FRED DAVIS CLARK, JR., CRISTAL R
. CLARK, and
their conspirators, including S.C.and C.P. created speciic Cay Clubs entities in order to direct
the real estate closing process and to assist with arranging lender financing for Cay Clubs sales
.
Throughout the loan application process, Cay Clubs and its closing agents would
conceal from the lender the leaseback payments, furniture packages and other financial
inducements that were promised to borrowers
,
by intentionally not including these fnancial
incentives on the submitted HUD-I Statements. These financial inducements were required to
be disclosed on the HUD-I Statements and were material to the loan approval process
:
14. FRED DAVIS CLARK, JR. and CRISTAL R. CLARK, and their conspirators
also would make and cause to be made false representations to lending institutions concerning
the financial operations of Cay Clubs. These false representations included causing the creation
of an audit that would be used to obtain bnnk loans directly to a Cay Clubs entity
, in which the
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conspirators would conceal material financial losses, debtand other obligations, and legal
impediments. The false representations and omissions included concealing from lending
institutions and others that FRED DAVIS CLARK, JR. did not file an individual or corporate
tax return for himself or any Cay Clubs entity during the years that Cay Clubs operated, despite
reporting more than $73 million in income for 2005 and 2006 on audited financials provided to
the lending institutions.
1 5. FRED DAVIS CLARK, JR. and CRISTAL R. CLARK would reap the
financial benefits of their scheme by keeping their names off of certain Cay Clubs bank accounts
or causing others to become signatories on Cay Clubs accounts, and then directing others to
make payments for the personal benefit of themselves. This included FRED DAVIS CLARK,
JR. directing others to make tens of thousands of dollars in monthly credit card payments for his
personal benefit and the benefit of his family from Cay Clubs accounts,and a monthly payment
of $15,000 to his then-estranged spouse, Ch.C. FRED DAVIS CLARK, JR. and CRISTAL
R. CLARK would cause funds derived from the scheme to be transferred to accounts of shell
companies they controlled, including the CCC and DC6 accounts at Bank of America, so they
could later access these funds to enjoy a lavish lifestyle.
Cay Club unit sales prices and real estate loan amounts were based upon
representations that tlke units would become luxury properties. W hen FRED DAVIS CLARK,
JR., CRISTAL R. CLARK, and their conspirators failed to make the promised improvements,
the units were worth significantly less than they had originally been valued. This caused many
investors to default on their loans, and investors and lending institutions lost millions of dollars
in relation to approximately 1,400 loans.
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1 7. Throughout the scheme, FRED DAVIS CLARK, JR. would make false and
fraudulent statements to others as to his ownership
, control and income related to Cay Clubs as a
means of concealing his role in the fraud. This included falsely claiming under oath during a
deposition before the SEC in M iami, Florida, on or about M ay 13
,
201 1, that he received no
income from Cay Clubs during its operations.
All in violation of Title 18, United States Code, Sedion 1349
.
COUNTS 2-5
BANK FRAUD
(18 U.S.C. j 1344)
Paragraphs 1 tllrough 9 of the General Allegations section of this Superseding
Indictment are re-alleged and incom orated herein by reference
.
2. Beginning in or around November, 2004
, and continuing until at least in or
around M ay, 201 1, in M om'oe County, in the Southern District of Florida
,
and elsewhere, the
defendants,
a/k/a isDave Clark,'' and
CRISTAL R. CLARIG
a/k/a iicristal R. Coleman,''
did knowingly and with the intent to defraud
, execute,and attempt to execute, and cause the
execution of, a scheme and artitice to obtain any of the moneys
, funds, credits, assets, securities,
or other property owned by, and under the custody and control of
, one or more financial
institutions, including JP M organ, W achovia
, W ells Fargo, Sun-rnzst, Fifth Third and Orion
Bank, by means of false and fraudulent pretenses
, representations, and promises relating to a
material fact, in violation of Title 18
, United States Code, Sections 134442) and 2.
10
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PURPOSE OF THE SCHEM E AND ARTIFICE
It was a purpose of the scheme and artitice for the defendants and their 3.
conspirators to unlawfully enrich themselves by misleading and defrauding ipvestors and lending
institutions, and obtaining money from investors as well as the proceeds of fraudulently obtained
bank loans for themselves and third parties for their personal use and benefh.
THE SCHEM E AND ARTIFICE
4. The slanner and h4eans section of Count 1 of the Suptrseding Indictment is
re-alleged and incomorated by reference as though fully set forth herein as a description of the
scheme and artifice.
EXECUTION OF THE SCHEM E AND ARTIFICE
5. On or about the dates specitsed as to each count below
,
in M onroe County, in the
Southern District of Florida, and elsewhere, the defendants did execute
,
and cause the execution
of,the aforesaid scheme and artifice to defraud, as more particularly described below:
2 4/15/2005 Execution of HUD-I Settlement and mortgage loan documents in
M onroe County, Florida for loan from W ells Fargo of approximately
$271,522 in the name of D.D., B.D., and D.De., for 2705 Via
Murano, Unit 135, Clearwater, FL
4/13/2006 Execution of HUD-I Settlement and mortgage Ioan documents in
Monroe County, Florida for loan from JP M organ of approximately
$634,902 in the name of W .S. and A.S.for 19 Sombrero Blvd
.,
Unit
42 1,M arathon, FL
4 4/17/2006 Execution of HUD -I Settlement and mortgage loan documents in
M onroe Cotmty, Florida for loan from JP M organ of approxim ately
$502,500 in the name of D.T.for 19 Sombrero Blvd., Unit 318
,
M arathon, FL
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6/30/2006 Execution of HUD-I Settlement and mortgage loan documents for
loan from W achovia in amount of approx
. $490,460 in the name of
L.S. and P.S. for 19 Sombrero Blvd., Unit 232
, M arathon, FL
ln violation of Title 18, United States Code
, Sections 1344(2), and 2.
COUNT 6
Conspiracy to Commit M ail and W ire Fraud
(18 U.S.C. j 1349)
The General Allegations section of this Superseding lndictment is re-
alleged and
incorporated herein by reference
.
Begirming in or around October 2010
, and continuing thereafter until at least in or
around April 2013, in Monroe County, in the Southern District of Florida
, and elsewhere, the
defendants,
a/k/a sDave Clark,'' and
CRISTAL R. CLARK,
a/k/a Scristal R. Coleman,''
did willfully, that is, with the intent to further the objects of the conspiracy
, and knowingly
combine, conspire, confederate
, and agree with each other and others known and unknown to the
Grand Jury:
a) to knowingly and with intent to defraud, devise and intend to devise a scheme and
artifice to defraud and to obtain money and property by means of materially false and fraudul
ent
pretenses, representations, and promises, knowing that they were false and fraudulent when
made,and knowingly causing to be delivered certain mail matter by U
.S. mail and by private and
commercial interstate carrier, according to the directions thereon
, for the purpose of executing
the scheme, in violation of Title 18
,
United States Code,Section 1341; and
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b) to knowingly and with intent to defraud, devise and intend to devise a scheme and
artifice to defraud, and to obtain money and property by means of materially false and fraudulent
pretenses, representations, and promises, knowing that they were false and fraudulent when
made, and transmitting and causing to be transmitted in interstate and foreign commerce
, by
means of wire communication,certain writings
,
signs,signals, pictures and sounds
, for the
purpose of executing the scheme and artifice,
Section 1343.
in violation of Title 18, United States Code
,
PURPOSE OF THE CONSPIRACY
It was a pumose of the consplracy for the defendants and their conspirators to
unlawfully emich themselves by misappropriation and diversion of funds owed to their business
partners and investors at CM Z and affiliated entities
, to themselves, by concealing cash
withdrawals, transfers and payments of such funds to themselves or third parties for their
persopal use and benetit.
M ANNER AND M EANS OF THE CONSPIM CY
The mau er and means by which the defendants and their conspirators sought to
accomplish the objects and purpose of the conspiracy included,among others, the following:
FRED DAVIS CLARK, JR. and CRISTAL R. CLARK would maintain bnnk
accounts at BofA in Key Largo, Florida, in the name of CCC and DC6
. The defendants would
receive monthly bank statements and other correspondence via U
.S. Mail by using a post office
box they controlled, located at P
.O. Box 1 1 19, Tavernier,Florida
,33070,among other places.
5. Funds were generated from the operation of the business of CM Z and its affiliates
by obtaining raw materials including gold and precious metals from pawn shops in the
Caribbean, and shipping these materials to a third party smelting plant in lllinois
. These funds,
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at times totaling hundreds of thousands of dollars per month, would then be transferred into the
CCC and DC6 BofA accounts.
6. CM Z and its affiliates, including CashW iz Holdings Ltd., had investors and
auditors who were provided with false and misleading information conceming the revenues and
eamings related to the pawn shops, including funds generated from the smelting operations.
FRED DAVIS CLARK, JR. and others acting at his direction would make false and misleading
representations to current and prospective investors and outside auditors concerning the internal
controls that existed at the business, and would represent that al1 material information related to
the operations and revenues of CashW iz Holdings Ltd. was disclosed in financial reports.
These representations were false and misleading as they failed to disclose that a significant
portion of the revenues of the company were subject to the personal and undocumented use by
FRED DAVIS CLARK, JR. and CRISTAL R. CLARK.
FRED DAVIS CLARK JR. and CRISTAL R. CLARK or individuals reporting
to them would make cash withdrawals and electronic funds transfers from the CCC and DC6
accounts at BofA for their own personal use and benefit, but would not disclose the BofA bank
statements or the extent of their personal use of the funds to others at CM Z and its afsliates,
including investors and outside auditors. FRED DAVIS CLARK JR. and CRISTAL R.
CLARK would ultimately cause a portion of the funds that were deposited into the CCC and
DC6 accounts to be transferred back to CM Z and its affiliates via interstate and international
wire transfers, but only after FRED DAVIS CLARK JR. and CRISTAL R. CLARK srst
siphoned off whatever amounts they decided to spend for themselves.
X FRED DAVIS CLARK JR. and CRISTAL R. CLARK would divert for their
own personal use substantial sums from the CCC and DC6 accounts that were othem ise due to
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CMZ and its affiliates,including for
school tuition, and other business ventures.
consumer goods, meals, travel, entertainment, private
W hen questions were asked by the principals, investors or outside auditors of
CMZ and its affiliates for an accounting of the use of funds or expenses related to the the CCC
and DC6 accounts, FRED DAVIS CLARK JR. and CRISTAL R. CLARK and their
conspirators would provide a phony agreement they had executed and explain that the accounts
were Spass-through'' accounts to minimize and conceal the extent of the diversion of such funds.
On separate occasions when it was to their benetst, FRED DAVIS CLARK JR. and CRISTAL
R. CLARK would execute an additional false agreement among themselves but with the same
date as the earlier agreement, that appeared to allow for higher fees and expenses to be deducted
from the pawn shop revenues than those listed in the earlier agreement. Defendants would use
the second phony agreement to explain their personal use of funds in the CCC and DC6
accounts, and to claim that these expenditures were business expenses of CCC and DC6
,
or of
CM Z and its affiliates. These phony documents, combined with false and misleading
statements made by FRED DAVIS CLARK JR.and persons acting at his direction
, gave the
impression that all or nearly aIl of the funds deducted from the CCC and DC6 accounts were
related to actual expenses of CCC or DC6, such as wire transfer fees or administrative filing fees
,
and were related to the business of CMZ and its affiliates.
10. Defendants were made aware prior to January 2013 that they would be sued by
the SEC in the SEC Fraud Action, induding through formal written notice provided to their
attorneys dated November 29, 2012 and December 7, 2012. FRED DAVIS CLARK
, JR.
concealed this information from CMZ and its affiliates, including the auditors
,
investors and
potential investors of the affliated entities.
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1 1. Shortly before the SEC tiled the SEC Fraud Adion on January 30, 2013, FRED
DAVID CLARK, JR. Erst informed the other principals of CM Z that he would be sued by the
SEC. FRED DAVIS CLARK, JR. then executed an agreement with CMZ to be paid for his
interest in the entity without disclosing the diversion and misappropriation of funds that FRED
DAVIS CLARK JR. and CRISTAL R. CLARK had caused from the pawn shop revenues and
CM Z'S other business accounts from approximately October 2010 through approximately
January 2013. In this way, FRED DAVIS CLARK, JR. caused CM Z and its affiliates to value
his interest in the business and pay him for that interest in an amount far in excess of what he
would have received but for the hidden diversion of funds, false statements
, and concealment of
material information during the course of the scheme.
12. On or about February 27, 2013, before a payment of nearly $2 million was to be
made to FRED DAVIS CLARK, JR. as part of his separation agreement
, questions were asked
by the CM Z principals regarding the potential diversion of funds by defendants tllrough the CCC
and DC6 accounts. The CM Z principals made a request to D
.S. and N.W ., persons who acted
at the direction of FRED DAVIS CLARK JR. and CRISTAL R. CLARK but were employed
by CM Z, for copies of the CCC and DC6 bank statements
,
which these persons could access.
FRED DAVIS CLARK, JR. dirtded D.S.and N.W . not to provide a copy of these bank
statements to CMZ and its affiliates in order to avoid detection of defendants' fraudulent conduct
before the $2 million payment was in hand.
A11 in violation of Title 18, United States Code, Section 1349.
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CO UNTS 7-9
M AIL FR AUD
(18 U.S.C. 5 1341)
The General Allegations section of this Superseding Indictment is re-alleged and
incorporated herein by reference.
2. Beginning in or around October 2010, and continuing thereafter until at least on
or about April 2013, in M onroe County, in the Southern District of Florida, and elsewhere, the
defendants,
FRED DAVIS CLARK , JR.,
a/k/a dDave Clark,'' and
CRISTAL R. CLARK,
a/k/a Scristal R. Colem an,''
did knowingly and with intent to defraud, devise and intend to devise a scheme and artifice to
defraud and to obtain money and property by means of materially false and fraudulent pretenses,
representations, and promises, knowing that the pretenses, representations, and promises were
false and fraudulent when made, and knowingly caused to be delivered certain mail matter by
U.S. mail and by private and commercial interstate carrier, according to directions thereon for
the purpose of executing the scheme and artifice.
PURPOSE OF THE SCHEM E AND ARTIFICE
was a purpose of the scheme and artifice for the defendants and their
accomplices to unlawfully enrich themselves by misappropriation and diversion of funds owed to
their business partners and investors at CMZ and affiliated entities,to themselves,by concealing
cash withdrawals, transfers and payments of such funds to themselves or third parties for their
personal use and beneft.
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THE SCHEM E AND ARTIFICE
Paragraphs 4 through 12 of the M armer and M eans section of Count 6 of this 4
.
Superseding Indictment are re-alleged and incorporated herein by reference as a description of
the scheme and artifice.
USE OF THE M AILS
On or about the dates specified as to each count below,FRED DAVIS CLARK
JR. and CRISTAL R.CLARK, for the purpose of executing and in furtherance of the aforesaid
scheme and artifice to defraud and to obtain money and property by means of materially false
and fraudulent pretenses,representations and promises, knowing that they were false and
fraudulent when made, did knowingly cause to be delivered by U.S. mail and by private and
commercial interstate canier, according to the directions thereon, the items identified below in
each count:
Bank statement for CCC BofA account ending in x1973,
7 November 30, 2010 delivered via U.S. mail to P.O. Box 1 1 19, Tavernier, Florida,
33070
Barlk statement for CCC BofA account ending in x1973,
8 March 31, 2011 delivered via U.S. mail to P.O. Box 1 1 19, Tavernier, Florida,
33070
Bank stafement for CCC BofA account ending in x1973,
9 M ay 31,201 1 delivered via U.S.mail to P.O. Box 1 1 19, Tavernier, Florida,
33070
ln violation of Title 18, United States Code, Sections 1341 and 2.
COUNT 10
Obstruction of Official Proceeding
(18 U.S.C. j 1512(c)(2))
1 . The General Allegations section of this Superseding Indictment is re-alleged and
incorporated herein by reference.
18
18 of 25
From at least on or about M ay 13, 201 1, through at least on or about April 22,
2013, in M inmi-Dade County, in the Southern District of Florida, and elsewhere,the defendant,
FRED DAVIS CLARK , JR.,
a/k/a diDave Clark,''
did corruptly obstnzct, influence, and impede, and endeavor to obstruct, influence, and impede,
the due and proper administration of the 1aw under which a pending proceeding was being
conducted, specitkally to frustrate the ability of the U. S. Securities and Exchange Commission,
an agency of the United States, in relation to ofticial investigation number No. F1.-03343, to
investigate the fraud alleged in SEC v.Barry J Graham, et al.,No.13-1001 I-CV-JLK (S.D.
F1a.),and identify income, assets and bank accounts attributable to defendants, and otherwise
trace proceeds of the alleged fraud, to wit,by providing false and misleading testimony,
engaging in certain financial transadions, using shell entities, and other conduct designed to
conceal the source, location and control of income, assets and funds owned and controlled by
FRED DAVIS CLARK, JR.
ln violation of Title 18, United States Code, Sections 1512(c)(2) and 2.
FORFEITURE
(18 U.s.C. j 981(a)(1)(C))
The General Allegations section, and the allegations of Counts 1 tllrough 10 of
this Superseding lndictment are re-alleged and incorporated herein by reference for the purpose
of alleging forfeiture to the United States of America,of property in which one or more of the
defendants have an interest.
Upon conviction of any of the offenses alleged in Counts 1 through 10 of this
Superseding Indictm ent, FRED DAVIS CLARK JR. and CRISTAL R. CLARK shall forfeit
19
19 of 25
to the United States any property, real or personal,which constitutes or is derived from proceeds
traceable to the offense of conviction or conspiracy to commit such offense.
3. The property subject to forfeiture shall include, but is not limited to:
a.
including but not limited to a sum of approximately $2,915,000;
a sum of money equal in value to the proceeds traceable to the offensets),
b. a sum of approximately $1,699,675 transferred on or about April 22, 2013 to a
bank account in the name of Dinero Shop, SA at Banco Davivienda, ending in x461 1, in Roatan,
Honduras;
a sum of approximately $125,000 previously located in a bank account owned or
controlled by FRED DAVIS CLARK, JR. and/or CRISTAL R. CLARK at Banco Davivienda,
in Roatan, Honduras; and
d. a sum of approximately $452,519.52 previously located in a bank account owned
or controlled by FRED DAVIS CLARK, JR. and/or CRISTAL R. CLARK at Banco
Davivienda, in Roatan, Honduras.
4. Pursuant to Title 21, United States Code, Section 853(p), made applicable through
Title 28, United States Code, Section 2461,if any property described above as being subject to
forfeiture, as a result of any act or omission of the defendants: cannot be located upon due
diligence; has been transferred, sold to, or deposited with a third party; has been placed beyond
the jurisdiction of the Court; has been substantially diminished in value; or, has been
commingled with other property which cannot be subdivided without difficulty; it is the intent of
the United States to seek the forfeiture of other property of the defendants up to the value of the
above-described forfeitable property.
20
20 of 25
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UNITED STATES DISTRIW COURT
SOUTHERN DISTRIW OF FCORIDA
UNITED STATES OF AM ERICA
VS.
FRED DAVIS CLARK, JR., and
ERISTAL R. CLARK,
Defendants.
/
Court Division: (select one)
Miami X Key W est
FTL W PB FTP
1do hereby certify that:
New Defendantts)
Number of New Defendants
Totalnumber of counts
CASE NO. l3-10034-CR-JEM(s)
CERTIFICATE OF TRIAL AU ORNEY*
Superseding Case Information:
Yes No X
Ihave carefully considered the allegations of the indictment, the number of defendants, the number of
probable witnesses and the Iegal complexities of the Indictment/lnformation attached hereto.
lam aware that the information supplied on this statement will be relied upon by the Judges of this Court in
setting their calendars and scheduling criminaltrials under the mandate of the Speedy TrialAct, Title 28
U.S.C.Section 3161.
Interpreter: (Yes or No) NO
List language and/or dialect
This case willtake 25 days for the parties to try.
Please check appropriate category and type of offense Iisted below:
(check only one) (Check only one)
1 0 to 5 days Petty
11 6 to 10 days M inor
III 11 to 20 days M isdem.
IV 21 to 60 days X Felony
V 61 days and over
6. Has this case been previously filed in this District Court? (Yes or No) Yes
If yes:
Judge: Hon.Jose E. Martinez Case No. 13-10034-CR-JEM
Has a complaint been filed in this matter? (Yes or No) No
If es: 9
Magistrate Case No.
Related Miscellaneous numbers:
Defendantts) in federalcustody as of une , 14 an June ,
Defendantts) in state custody as of
Rule 20 from the Istrict o
Is this a potentialdeath penalty case? (Yes or No) No
Does this case originate from a matter pending in the Northern Region of the U.S.Attorneyls Office prior to
October 14, 2003? Yes X No
Does this case originate from a matter pending in the CentralRegion of the U.S.Attorney's Office prior to
September 1, 2007? Yes X No
*penalty Sheetts) attached
J RO D Y
A SlS NT UNITED STATES AU ORNEY
FIo 'a Bar # A5501106
REV 4/8/08
22 of 25
SOUTHERN DISTRICT OF FLORIDA
PENALTY SHEET
Defendant's Name: FRED DAVIS CLARK. JR.. a/k/a $* @ve Cl@rk''
Case No: 13-10034-CR-JEM (s)
Count #: 1
Conspiracv to Commit Bank Fraud
Title 18. United States Code. Section 1349
# M ax.penalty: Thirty (30) years'imprisonment
Counts #: 2-5
Bank Fraud
# Max.penalty: Thirty (30) yap' imprilon-
mept - . . . . .
Count #: 6
Conspiracy to Commit Mail and Fraud
# Max.penalty: Twenty (20) years'imprisonment
Counts #: 7-9
M ail Fraud
Title 18s United States Code. Section 1341
# M axvpenalty: Twenty (20) years'imprisonment
23 of 25
Count #: 10
Obstnzction of Oftscial Proceedin
.( 1
i Title 1 8. United States Code. Section 1512(c)
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* Maxppenalty: Twenty (20) years'imprisonment - - -
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1 *Refers only to possible term of incarceration, does not include possible fines, restitution,
' forfeitures that m ay be applicable.
special assessm ents, parole term s, or
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24 of 25
SOUTHERN DISTRICT OF FLORIDA
PENALTY SHEET
Defendant's Nam e: CRISTAL R. CLARK alkla icristal R. Colem an''
Case No: 13-10034-CR-JEM (s)
Count #: 1
Conspiracy to Commit Bank Fraud
Title 18.United States Code. Section 1349
# Max.penalty: Thirty (30) years' imprisonment
Counts #:2-5
Bank Fraud
Title 1 8. United States Codes Section 1344
* Max-penalty: Thirty (30) years' imprisonment
Count #: 6
Conspiracy to Commit M ail and Fraud
# Max.penalty: Twenty (20) years'imprisomnent
Counts #:7-9
M ail Fraud
Title 18. United States Codes Section 1341
* Max.penalty: Twenty (20) years'imprisonment
WRefers only to possible term of incarceration, does not include possible fines, restitution,
special assessm ents, parole term s, or forfeitures that m ay be applicable.
25 of 25

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UNITED STATES DISTRICT COURT

SO UTH ERN DISTRICT O F FLO RIDA

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