Palm Beach EB-5 developer’s estate heading to auction

Federal officials allege Robert Matthews misused EB-5 money with the Palm House Hotel

Miami /
Jan.January 22, 2019 01:30 PM

Robert V. Matthews and 101 Casa Bendita

The estate of the developer of the Palm House Hotel, a failed EB-5 project, is now expected to head to auction, as he faces charges tied to the development.

Bids would start at $31 million for Robert Matthew’s 15,849-square-foot waterfront home at 101 Casa Bendita in Palm Beach, the Palm Beach Daily News reported. A motion has been filed before the U.S. Bankruptcy Court that would send the property to auction on March 28, where the sale would go to the highest bidder. A hearing is set for Feb. 5 for final approval.

The proceeds will go to pay Matthew’s creditors, including DB Private Wealth Mortgage Ltd., a Palm Beach lender which claims its owed $28 million by Matthews, the Palm Beach Daily News reported.

Federal officials have charged Matthews with multiple counts of wire and bank fraud and money laundering over his planned Palm House Hotel development at 160 Royal Palm Way. The project is still unfinished and prosecutors allege Matthews used money solicited from EB-5 investors for his personal gain.

In a separate lawsuit filed by a group of EB-5 investors, Matthew’s development group allegedly claimed that famous celebrities and politicians such as Bill Clinton, Donald Trump, Celine Dion and Bill Koch would serve on the Palm House’s advisory board when, in fact, they did not.

Matthews has pleaded not guilty to the charges.

Related Companies recently offered $32 million for the Palm House Hotel property that is also heading to auction soon. [Palm Beach Daily News]Keith Larsen


Related Articles

arrow_forward_ios
Montford Group' Sunju Patel and Opterra Capital Glenn Alba with 2940 Collins Avenue (Montford Group, Getty)
Montford, Opterra JV buys Hilton Garden Inn Miami Beach for $28M
Montford, Opterra JV buys Hilton Garden Inn Miami Beach for $28M
Joseph Chetrit and The Tides South Beach (Getty, The Tides South Beach)
Chetrit’s lender scores victory in South Beach hotel foreclosure
Chetrit’s lender scores victory in South Beach hotel foreclosure
100 Fairway Drive, Deerfield Beach with Ally Visram and Howard Wurzak (Wurzak Hotel Group, Google Maps)
Wurzak buys Deerfield Beach DoubleTree for $27M
Wurzak buys Deerfield Beach DoubleTree for $27M
Allied Partners' Eric Hadar and RH's Gary Friedman with the Savoy hotel (Allied Partners, Getty, Google Maps)
Inside RH’s plans for $100M renovation of Miami Beach hotel
Inside RH’s plans for $100M renovation of Miami Beach hotel
Moto Capital Group's Marcos Lima with 350 Ocean Drive (Loopnet, LinkedIn, Getty)
Toronto firm picks up Ocean Drive hotel for $39M
Toronto firm picks up Ocean Drive hotel for $39M
Codina Partners’ Armando Codina and Ana-Marie Codina Barlick with 5350 Park condo project (Codina Partners, Getty)
Judge orders Codina Partners’ affiliate to pay Grycon $8M in damages
Judge orders Codina Partners’ affiliate to pay Grycon $8M in damages
Red South Beach at 3010 Collins Avenue, Tom Assouline and August “Gussie” Busch (Instagram/gussiebusch, Google Maps, Getty)
Busch family partners with Assouline Capital to buy Red South Beach hotel
Busch family partners with Assouline Capital to buy Red South Beach hotel
Balzebre Investments' Robert Balzebre with 8710 Southwest 72nd Street
Winn-Dixie sues landlord over leaky roof at South Miami store
Winn-Dixie sues landlord over leaky roof at South Miami store
arrow_forward_ios

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

Loading...