Sixteen states, five provinces on alert, while several cease and desist orders issued. Website promises up to 2.7% daily return.
Florida filing says Richard and Susan Olive bilked $75 million from more than 400 investors in more than 30 states.
Instead of using investor funds to develop resort properties, SEC said, Cay Clubs executives used new investor deposits to pay leaseback returns to earlier investors.
The SEC has issued a fraud alert to help protect individuals who may receive lump sum payouts following Hurricane Sandy.