Federal prosecutors and securities regulators charged the owner of a New York investment fund engineered a $21 million investment fraud scheme that stashed cash in a Delray Beach house and beach club membership.

From 2014 to last March, Brent Borland allegedly raised $21.9 million from about 40 investors in his Belize Infrastructure Fund. The investors were told the money was going to build the Placencia International Airport in the Central American country. Prosecutors charged Borland promised high rates of return on the funds, which were fully secured by real estate in Belize that was free of any liens or obligations.

“In reality, some of the real property investors were told secured debt did not even exist; and Borland allegedly was using their money for personal expenses, such as luxury automobiles, a beach club membership and private school tuition for his children,” U.S. Attorney Geoffrey Berman of the Southern District of New York said Wednesday in a statement. “Cases such as this serve as a cautionary tale for investors — always carefully vet your investments — and if something seems too good to be true, it probably is.”

Borland is listed as a registered voter at 1034 Lewis Cove Road, which sits on the barrier island and backs up to a canal with access to the Intracoastal Waterway in Delray Beach. The Palm Beach County appraiser's office lists an appraised value of $2.56 million for the 6,434-square-foot house purchased by Borland's wife, Alana, in 2008 two years after it was built.

All of the investors ultimately lost money in the transaction, officials charged. One investor who sued Borland after purchasing a $1 million note in the fund received only approximately $400,000 as a result of the court action.

Another California investor who sued in the Southern District of Florida received a $338,892 default judgment in January to cover a personal guaranty on a $250,000 promissory note executed in 2006 by the Belize Infrastructure Fund.

Florida corporate records list nine companies in Borland's name.

In the criminal and civil complaints, the government alleged Borland diverted more than $7.5 million to his personal use. At least $1.75 million went to pay the mortgage on Borland's Florida home, $2.7 million covered his wife's credit card bills, and $36,000 went toward a Delray Beach club membership.

Another $25,000 went to pay for a Mercedes-Benz G 63 registered in Borland's name, while $31,000 of the funds were spent at Bloomingdale's and $10,000 was used at a store called Luxury of Watches. More than $183,000 was withdrawn as cash from Borland's account.

The U.S. Securities and Exchange Commission also announced charges against Borland in the matter. The SEC also listed Borland's wife and a corporation controlled by the couple as relief defendants.

Ellenoff Grossman & Schole partners Matthew Baum and David Gehn are representing Borland. Neither responded to a request for comment by deadline.

The U.S. attorney's office said Borland was arrested Wednesday and appeared before U.S. Magistrate Judge Barbara Moses of the Southern District of New York.