Superseding Indictment

UNITED STATES DISTRICT COURTSO UTH ERN DISTRICT O F FLO RIDA

CASE NO. 13-10034-CR-JEM (s)18 U.S.C. j 134918 U.S.C. j 134418 U.S.C. j 134118 U.S.C. j 1512(c)(2)18 U.S.C. j 218 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 1,400investors 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 formrequired 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 companywith 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 accountat 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 atCay 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 SSECFraud 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 throughtheir 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 1Conspiracy 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,

FRED DAVIS CLARK, JR.,a/lda dDave Clark,'' andCRISTAL 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 any of themoneys, 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 entities.

The conspirators would operate these entities as though they were one entity using the nam 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 over 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 simultaneously 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 the 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 toFor 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 paym 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 representations in marketing

materials that Cay Clubs would allow investors to iRetire Rich and Young in Paradisel,'' and

that a Cay Clubs investment involved tibuilt in equity,'' tiimmediate incomes'' and came with an

k'exit strategy.'' The marketing mattrials also falsely promoted the leaseback 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

apidatedproperties for which Cay Clubs did not have the financial ability t

o make the promisedimprovements

.

9. Through sales agents located in the Florida Keys and elsewhere, 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 time of the purchase or

shortly thereafter.

10. As Cay Clubs began to experience serious tinancial difficulties 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 financial commitments that had

already been promised to earlier investors, including from 2004

, 2005, and 2006. Cay Clubshad to sell more units and obtain the proceeds of more bank fi

nancings to prevent Cay Clubsfrom cpllapsing. Even though it was apparent by 2007 th

at Cay Clubs could not meet itsfinancial 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 unrelatedto 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 tothe 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 CRISTALR. 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 2-5BANK 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,

FRED DAVIS CLARK, JR.,a/k/a isDave Clark,'' andCRISTAL 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.

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PURPOSE OF THE SCHEM E AND ARTIFICE

It was a purpose of the scheme and artitice for the defendants and their3.

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 inM 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 ViaMurano, Unit 135, Clearwater, FL

4/13/2006 Execution of HUD-I Settlement and mortgage Ioan documents inMonroe 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 inM 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 forloan from W achovia in amount of approx

. $490,460 in the name ofL.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 6Conspiracy 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,

FRED DAVIS CLARK, JR.,a/k/a sDave Clark,'' andCRISTAL 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 andartifice 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 andartifice 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 byFRED 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 bemade 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 7-9M AIL FR AUD(18 U.S.C. 5 1341)

The General Allegations section of this Superseding Indictment is re-alleged and


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,'' andCRISTAL 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 this4.

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,

33070Barlk 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,33070Bank 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 10Obstruction of Official Proceeding

(18 U.S.C. j 1512(c)(2))1 . The General Allegations section of this Superseding Indictment is re-alleged and


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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 otherwisetrace 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

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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 abank 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 orcontrolled 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 toforfeiture, 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 beencommingled 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.

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, United States Code, Sections 98 1(a)(1)(C) and 982(a)(2)(A), and

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UNITED STATES DISTRIW COURTSOUTHERN DISTRIW OF FCORIDA

UNITED STATES OF AM ERICA

VS.

FRED DAVIS CLARK, JR., andERISTAL R. CLARK,

Defendants./

Court Division: (select one)Miami X Key W estFTL W PB FTP

1 do hereby certify that:

New Defendantts)Number of New DefendantsTotal number of counts

CASE NO. l3-10034-CR-JEM(s)

CERTIFICATE OF TRIAL AU ORNEY*

Superseding Case Information:

Yes No X

I have carefully considered the allegations of the indictment, the number of defendants, the number ofprobable witnesses and the Iegal complexities of the Indictment/lnformation attached hereto.l am aware that the information supplied on this statement will be relied upon by the Judges of this Court insetting their calendars and scheduling criminal trials under the mandate of the Speedy Trial Act, Title 28U.S.C. Section 3161.

Interpreter: (Yes or No) NOList language and/or dialectThis case will take 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 Petty11 6 to 10 days M inorIII 11 to 20 days M isdem.IV 21 to 60 days X FelonyV 61 days and over

6. Has this case been previously filed in this District Court? (Yes or No) YesIf yes:Judge: Hon. Jose E. Martinez Case No. 13-10034-CR-JEM

Has a complaint been filed in this matter? (Yes or No) NoIf es:9Magistrate Case No.Related Miscellaneous numbers:Defendantts) in federal custody as of une , 14 an June ,Defendantts) in state custody as ofRule 20 from the Istrict o

Is this a potential death penalty case? (Yes or No) NoDoes this case originate from a matter pending in the Northern Region of the U.S. Attorneyls Office prior toOctober 14, 2003? Yes X No

Does this case originate from a matter pending in the Central Region of the U.S. Attorney's Office prior toSeptember 1, 2007? Yes X No

*penalty Sheetts) attached

J RO D YA SlS NT UNITED STATES AU ORNEYFIo ' a Bar # A5501106

REV 4/8/08

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UNITED STATES DISTRICT COURTSOUTHERN 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

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Count #: 10

Obstnzction of Oftscial Proceedin.( 1i Title 1 8. United States Code. Section 1512(c)?)

* Maxppenalty: Twenty (20) years' imprisonment - - -r

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UNITED STATES DISTRICT COURTSOUTHERN 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


# Max.penalty: Thirty (30) years' imprisonment

Counts #: 2-5

Bank Fraud

Title 1 8. United States Codes Section 1344

* Max-penalty: Thirty (30) years' imprisonmentCount #: 6

Conspiracy to Commit M ail and Fraud


# Max.penalty: Twenty (20) years' imprisomnentCounts #: 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.

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Superseding Indictment

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