The money flowed in and out of Cay Clubs at a quick pace, but now the developer lacks enough cash to meet its financial obligations.
Even as the condo market flattened in 2006, Cay Clubs sold more than $300 million in condos in a portfolio stretching from Crested Butte, Colo., to Marathon. Last year’s profit: $46 million.
Now the company says it’s in a cash crunch, without enough money to cover lease-back agreements with as many as 140 condo buyers.
Where did the $46 million go? Most of it — $41 million — was paid out to Chief Executive Officer Dave Clark, President David Schwarz and their minority partners, according to corporate records and interviews with executives.
Securities and Exchange Commission documents show that last year, Cay Clubs loaned $1.4 million to a separate Clark company that runs the hangars and a fuel depot at the Marathon airport, Cristal Clear Aviation. That was part of $14.5 million the company loaned to Clark, Schwarz or the entities they controlled, including the BXRL fishing tournament, a company trying to market a new rum and a clean-fuel venture. (Cay Clubs also borrowed $6.5 million from Schwarz and Clark entities, the records show.)
BY DOUGLAS HANKS, MiamiHerald.com
