Developer admits to $800K embezzlement charges

CLEARWATER — Developer Clark East, 59, of Sugarland, Texas, admitted to charges in an embezzlement case worth at least $800,000.

East previously obtained a loan from Stearns Bank to develop a property at 3700 Ulmerton Road Plaza, Clearwater, according to a statement from the U.S. Attorney's Office in Tampa. East subsequently defaulted on the loan and Stearns Bank obtained approval to sell the property at foreclosure March 27, 2012, officials contended.

But the day before the scheduled foreclosure sale, East filed for bankruptcy through his company, 3700 Ulmerton Road LLC. During the bankruptcy proceedings, East was ordered to sell the property and to remit $1.2 million in sales proceeds to Stearns Bank, officials alleged.

Rather than repaying Stearns Bank, prosecutors said East embezzled approximately $800,000 of proceeds that were part of the bankruptcy estate and due to Stearns Bank.

East faces a maximum penalty of five years in federal prison.