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Former executive of failed Keys resort charged in $300M scam

October 17, 2016 - 6:45 AM

MIAMI - Another former executive of a failed Florida Keys resort has been charged in a $300 million vacation rental scam.

The Miami Herald reports (http://hrld.us/2e0S4j1 ) 60-year-old David Schwarz was arrested last week on federal charges in Orlando. Schwarz was once the chief financial officer and one-third owner of the Cay Clubs Resorts and Marinas.

Prosecutors say 1,400 investors were defrauded. The resort's former president was sentenced in February to 40 years in federal prison. Two ex-sales executives pleaded guilty to conspiracy charges and were sentenced to five years in prison.

Schwarz was indicted on multiple charges, including bank fraud. He faces up to 30 years in prison for each of the most serious charges.

Schwarz's attorney, Kenneth Hazouri, didn't immediately respond to messages left Monday by The Associated Press.

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Information from: The Miami Herald, http://www.herald.com

News from © The Associated Press, 2016
The Associated Press

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