KEY WEST, Fla. -- A former vacation resort executive has been sentenced to 40 years in prison for his role in what federal prosecutors called a $300 million scam.
A federal judge in Key West, Florida, imposed the sentence Thursday on 60-year-old David Schwarz. A jury previously found Schwarz guilty of conspiracy to commit bank fraud, bank fraud and Internal Revenue Service interference.
Schwarz was once chief financial officer and one-third owner of the Cay Clubs Resorts and Marinas, which operated resorts in the Florida Keys, Clearwater, Orlando and Las Vegas. Prosecutors say 1,400 investors who purchased units in Cay Clubs developments were defrauded.
The resort's former president, Fred Davis "Dave" Clark Jr., was sentenced last year to 40 years in federal prison. Two former sales executives were sentenced to five years in prison.