EB-5 fraud scheme in Palm Beach lands development team in jail

Funds were allegedly used to buy homes, luxury cars, a yacht and to pay off personal debt

TRD MIAMI /
Mar.March 16, 2018 12:40 PM

160 Royal Palm Way and Robert V. Matthews and Les Evans (Credit: Google, Delray Beach, GoCPG.org and Leslie Robert Evans & Associates, PA)

Palm Beach developer Robert Matthews and real estate attorney Leslie R. Evans have been charged with fraud for their involvement in a real estate scam that swindled $50 million from about 50 Chinese and Iranian investors in recent years.

The scam redirected EB-5 funds intended for a Palm Beach condo-hotel project at 160 Royal Palm Way, according to the Palm Beach Daily News. Each investor provided $500,000, the minimum amount required to be eligible for a visa through the EB-5 investor program.

But instead of remaining in the developers’ escrow account, the $50 million investment was allegedly “improperly transferred” to other accounts, the Palm Beach Daily News reported, citing a lawsuit. The suit alleges the EB-5 funds were used to buy homes, luxury cars, a yacht and to pay off personal debt.

The indictment charges Matthews with eight counts of wire fraud, one count of bank fraud, one count of conspiracy to commit bank fraud and wire fraud, and 10 counts of illegal monetary transactions. Evans was charged with eight counts of wire fraud, one count of bank fraud, one count of conspiracy to commit bank fraud and wire fraud, and one count of illegal monetary transactions.

The development, meanwhile, is still unfinished. Cary Glickstein, who is also the mayor of Delray Beach, was appointed by a judge to oversee the completion of the Palm House project. At the council meeting, Glickstein said he’s also considering selling the property to a developer. [Palm Beach Daily News] – Amanda Rabines


Related Articles

arrow_forward_ios
Map of priciest condo sales and Bayview Fisher Island (Credit: Google Maps)

Weekly condo sales fall again in early August

Weekly condo sales fall again in early August
Map of priciest condo sales and 321 Ocean (Credit: Google Maps)

Miami’s condo market rebounds, led by $22M sale at 321 Ocean

Miami’s condo market rebounds, led by $22M sale at 321 Ocean
Map of priciest condo sales and Oceana Bal Harbour (Google Maps)

Oceana Bal Harbour sale tops Miami condo sales last week

Oceana Bal Harbour sale tops Miami condo sales last week
Map of priciest condo sales and Oceana Bal Harbour (Google Maps)

Miami condo sales steady as Covid cases surge

Miami condo sales steady as Covid cases surge
Map of priciest condo sales and St. Regis Bal Harbour

Condos selling in Miami-Dade amid soaring coronavirus cases

Condos selling in Miami-Dade amid soaring coronavirus cases
Map of priciest condo sales and One Thousand Museum (Credit: Google Maps and Wikipeda)

Miami condo sales bounce back

Miami condo sales bounce back
Map of priciest condo sales and Oceanside Fisher Island (Credit: Google Maps and Redfin)

Miami condo sales flatten at the end of June

Miami condo sales flatten at the end of June
Map of priciest condo sales and Bayview Fisher Island unit 5342 (Google Maps, Compass. JJW Construction)

Miami condo sales dollar volume continues to drop

Miami condo sales dollar volume continues to drop
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...