MIAMI-The Securities and Exchange Commission filed charges against five former real estate executives in connection with an alleged Ponzi scheme that allegedly duped investors out of $300 million.

The SEC states that approximately 1,400 investors were defrauded into believing they were funding the development of five-star destination resorts in Florida and Las Vegas when they were actually buying into a Ponzi scheme.

The SEC filed a complaint in U.S. District Court in Miami in connection with the alleged Ponzi scheme that involved about 1,400 investors in the Cay clubs Resorts and Marinas, according to a report in the Miami Herald, The case names Fred Davis Clark, Jr., of Grand Cayman, Cayman Islands, who was the former president and CEO of Cay Clubs, his wife Cristal R. Coleman, who served as a manager and sales agent; Barry J. Graham of Marathon, FL, a former sales director; David W. Schwarz of Orlando, who was the former chief accounting officer; and Ricky Lynn Stokes of Fort Myers, who was a former sales director, as defendants.

Clark and Schwarz launched Cay Clubs in 2004 and operated it from Clark’s home at the time in Key Largo, according to the SEC and solicited investors during a three-year period from 2004 to 2007. Cay Clubs purported to focus on renovating aged and abandoned condominium projects in the Florida Keys, Central Florida and Las Vegas. See story in the Miami Herald.