Palm House Hotel developer will use taxpayer money to pay legal bills: report

Robert Matthews is still awaiting sentencing after pleading guilty of defrauding foreign investors

Miami /
Sep.September 05, 2019 10:15 AM
Robert Matthews and the Palm House Hotel (Credit: NAIOP)

Robert Matthews and the Palm House Hotel (Credit: NAIOP)

The developer of the Palm House Hotel, one of the largest EB-5 frauds in South Florida history, can no longer afford to pay his lawyers.

Robert Matthews will use taxpayer funds to pay his attorneys, as he awaits sentencing after he pleaded guilty in April to defrauding foreign EB-5 investors out of millions of dollars, according to the Associated Press.

U.S. District Judge Victor Bolden in Bridgeport, Connecticut, approved paying Robert Matthews’ private attorneys with public funds retroactive to April 2018, the Associated Press reported.
Matthews’ bank records showed he had about $2,890 in income from April 1 to June 30, according to a filing in his Chapter 11 bankruptcy case.

A sentencing date has not been scheduled for Matthews.

Matthews was the developer of the condo-hotel project at 160 Royal Palm Way in Palm Beach that began soliciting EB-5 investment in 2012. The development group assured investors that the project would be completed in less than a year and that their money would be protected in an escrow account with a bank. It also claimed that Donald Trump, Bill Clinton and Celine Dion would be on the condo-hotel’s advisory board.

In reality, no such advisory board existed and much of the money was instead diverted for the personal use of the Matthewses, according to federal prosecutors. [Daily Business Review] — Keith Larsen


Related Articles

arrow_forward_ios
The Surfside collapse condo site at 8777 Collins Avenue (Getty)
Surfside bidder gets extension for due diligence, pushing auction to April
Surfside bidder gets extension for due diligence, pushing auction to April
From left: Pedro Villar, owner of Aloft Miami Brickell, along with his attorney Joe Pack (Newstar Media)
Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
One Bal Harbour at 10295 Collins Avenue in Bal Harbour, FL (Seaside Properties Group, iStock/Illustration by Steven Dilakian for The Real Deal)
One Bal Harbour associations settle suit over shared utility, valet expenses
One Bal Harbour associations settle suit over shared utility, valet expenses
RFR Holding's Aby Rosen (Getty), East End Capital's Jonathon Yormak (East End Capital) and 100 Biscayne Boulevard (iStock)
Aby Rosen’s RFR buys 100 Biscayne office tower in downtown Miami for about $90M: sources
Aby Rosen’s RFR buys 100 Biscayne office tower in downtown Miami for about $90M: sources
Matt Sellick, president, Stock Luxury Homes, in front of 916 South Ocean Boulevard (Stock Luxury Homes, Zillow, iStock)
Oceanfront spec mansion on Palm Beach’s Billionaires’ Row trades for $57M
Oceanfront spec mansion on Palm Beach’s Billionaires’ Row trades for $57M
From left: Greg Friedman (buyer), managing principal and CEO, Peachtree Hotel Group, and David Leatherwood (seller), CEO and managing member, Norwich Partners (Peachtree Hotel Group, Norwich Partners, Booking.com, iStock)
Peachtree buys AC Hotel by Marriott in Aventura for $50M
Peachtree buys AC Hotel by Marriott in Aventura for $50M
Z Ocean Hotel in Miami Beach
Appeals court upholds $8M judgment against former Z Ocean condo-hotel partners
Appeals court upholds $8M judgment against former Z Ocean condo-hotel partners
(Apartments.com, iStock/Illustration by Steven Dilakian for The Real Deal)
Little Havana apartment building targeted in $15M mortgage foreclosure suit
Little Havana apartment building targeted in $15M mortgage foreclosure suit
arrow_forward_ios

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

Loading...