FLA. KEYS (CBSMiami/AP) – A Florida Keys’ couple¬†is facing fraud and other charges for what authorities called a $300 million vacation rental scheme.

According to federal prosecutors, Fred Davis Clark Jr. and Cristal Clark committed bank fraud using a fake company. The pair operated under the company name Cay Clubs Resorts and Marinas, which supposedly specialized in turning decrepit property into luxury resorts.

Authorities said investors were promised 20 percent of each property flipped, but Cay Clubs never made the improvements. Instead the money from new investors went to repay older ones. As for the banks, they were reportedly defrauded by false paperwork.

It is estimated about 1,400 investors were defrauded.

The Clarks have pleaded not guilty in the case. They are being held without bail pending a trial in Key West federal court.

(TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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