Feds investigate City of Palms Park consultant over alleged $2.2M fraud

FORT MYERS, Fla. — Demolition is underway at City of Palms Park while federal prosecutors accuse the founder of the company helping Fort Myers plan the site’s future of diverting public money from another sports project.

A civil forfeiture complaint filed July 16 alleges James Card, founder of Indiana-based Card & Associates, engaged in a “scheme to defraud” connected to the publicly funded Mishawaka Fieldhouse project.

The filing says the project agreement required that “the Project Funding Amount shall only be used for Project Costs.” Prosecutors allege Card and his company did not use all of the money for legitimate construction expenses and instead used some funds “for Card’s personal use and benefit.”

According to the complaint, more than $2.2 million was moved through business and personal accounts and used toward Card’s $6.625 million waterfront home on Marco Island.

“The total of $2,220,508.89 of the mortgage deposit for the Defendant Asset was funded by monies obtained as part of a scheme to defraud,” prosecutors wrote.

The government alleges the transfers were designed to “conceal and disguise” the money’s source, ownership and control. It is seeking forfeiture of the Marco Island property. Card has not been criminally charged, and the allegations have not been proven in court.

Meanwhile, Card & Associates has a contract worth up to $356,180 for scoping, feasibility and pre-construction work at City of Palms Park. The city says it has paid the company $66,237.50 so far.

A Fort Myers spokesperson said the city is proceeding as planned for now, though “that could change as the process moves forward.”

“The City has not made any commitment to Card & Associates beyond the current scoping and feasibility work,” the city said.

The agreement allows Fort Myers to terminate or suspend the contract through written notice.

Retired FBI agent Richard Kolko said nothing in the federal complaint alleges wrongdoing involving the company’s Fort Myers work.

“There’s nothing here that puts 2 and 2 together that says that this company dealing with the city of Fort Myers has conducted any illegal activity,” Kolko said.

WINK News contacted Card & Associates for comment on the federal allegations and its work in Fort Myers but have not received a response.