The founder of TracFind, a keychain-sized GPS tracking device marketed as a tool that can find everything from missing persons to firearms, has pleaded guilty to embezzling $800,000 from a bankrupt Florida real estate venture.
Clark D. East, 59, entered his guilty plea before a federal judge earlier this month in Tampa, and it was formally accepted by the court on Monday. East had originally pleaded not guilty to embezzling the estate’s proceeds.
Federal prosecutors said East had been ordered to pay a Midwest bank that issued him a loan to develop the shopping center at 3700 Ulmerton Road Plaza in Clearwater, Florida. Prosecutors said East defaulted on the loan and subsequently obtained approval to sell the property at foreclosure on March 27, 2012. East, however, filed for bankruptcy protection through his limited liability company, 3700 Ulmerton Road, the day before the scheduled foreclosure sale.
During the bankruptcy proceedings, a federal court ordered East to sell the property and remit $1.2 million to Stearns Banks of Minnesota. But instead of paying the bank, East embezzled $800,000, prosecutors said.
East was indicted and subsequently arrested in the Houston area on Dec. 2. He originally pleaded not guilty, but attorneys representing both sides negotiated a plea agreement. East, via text message, deferred comment to his attorney Anne Borghetti, who could not be reached before this morning’s deadline.
The court documents also reveal that East’s startup, TracFind, is part of a separate federal investigation for East’s alleged role in “a large-scale fraud scheme that targeted banks and investors.”
Assistant U.S. Attorney Christopher Poor told the court in February that the investigation found that funds from the alleged scheme partially funded TracFind’s development and ongoing promotion. Federal prosecutors notified the court about the investigation after East’s attorney sought permission for him to have unrestricted travel to several cities so he could market and showcase TracFind. Those cities include Barcelona, Spain, for the Mobile World Conference. The status of the investigation is unclear.
East faces a maximum penalty of five years in federal prison. A sentencing hearing will take place at 2 p.m. on July 28.
—Alexandria Burris
