2 ex-vacation rental executives get prison in $300M fraud

Author: Associated Press
Published:

MIAMI (AP) – Two former executives at a Florida resort company have been sent to federal prison for their roles in a $300 million vacation rental fraud scheme.

U.S. District Judge Jose E. Martinez sentenced 59-year-old Barry Graham and 54-year-old Ricky Lynn Stokes, both of Fort Myers, to five years each in prison. They were formerly executives at Cay Clubs Resorts and Marinas, which prosecutors say swindled some 1,400 investors in the Florida Keys and elsewhere.

Graham and Stokes pleaded guilty to a fraud conspiracy charge. Evidence shows Cay Clubs promised investors big returns by developing dilapidated properties into luxury resorts, but failed to do so. Graham and Stokes also admitted manipulating vacation unit marketing materials to falsely make them appear more valuable.

Two other former executives are awaiting trial June 1.

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