Glenn Straub loses appeal on Palm House sale

The former developer of the property, Robert Matthews, is awaiting sentencing after defrauding EB-5 investors

TRD MIAMI /
Nov.November 29, 2019 10:30 AM
Glenn Straub and the Palm House Hotel

Glenn Straub and the Palm House Hotel

The creditors of the Palm Beach condo-hotel project that was once at the center of South Florida’s largest EB-5 fraud case may be one step closer to getting paid.

A federal appeals court denied an appeal by Wellington developer Glenn Straub to overturn the sale of the Palm House Hotel, according to the Palm Beach Daily News. Straub attempted to buy the bankrupt property at 160 Royal Palm Way in Palm Beach and claims he offered $50 million for the property, but instead a federal court approved the sale to the U.S. affiliate of London + Regional Properties for $40 million earlier this year. The deal has since closed but the funds have been held in escrow.

Straub claims he presented the fairest and best offer for the property, the Palm Beach Daily News reported. Straub said he is seeking the appeals court to re-hear the appeal. The trustee, however, had issues about Straub’s past involvement with the property.

Straub has another ongoing appeal in federal court over a bid he made to buy the property with no cash. Straub claims he holds a defaulted $27.5 million mortgage after he alleged his companies loaned money to the failed EB-5 project.

The former developer of the Palm House Hotel, Robert Matthews, is awaiting sentencing after pleading guilty to criminal fraud charges for bilking EB-5 developers out of millions of dollars. Matthews said he would use the money to redevelop the dilapidated Palm House Hotel into a five-star hotel, but instead used the money to buy a 151-foot yacht named “Alibi” as well as a property in Connecticut. [Palm Beach Daily News] — Keith Larsen


Related Articles

arrow_forward_ios
Daily Digest Miami

Lawsuit seeks to stop new EB-5 regulations, some Florida Keys roads could be abandoned due to rising seas

The front entrance of the Seybold building at 36 N.E. First Street

Diamonds aren’t forever: Seybold Building jeweler claims owner won’t relocate his store

Monty’s Miami Beach

Suntex Marinas is trying to evict Monty’s from Miami Beach property

Dean Trantalis, Ken Valach, and a Alexan Tarpon River rendering

Fort Lauderdale scores victory in legal battle against Trammell Crow

Set Midtown rendering

Brickell Construction sues for $1.2M in work at project near Midtown Miami

Daily Digest Miami

LVMH in early talks to buy Tiffany for $16B, Riviera Beach residents being evicted

Ugo Colombo and Craig Robins (Credit: iStock)

Judge tosses out Craig Robins’ claim that Ugo Colombo bribed juror in private jet case

From left: Arnaud Karsenti, Nelson Stabile, and Victor Ballestas with a rendering of Sereno at Bay Harbor Islands

Sereno condo association sues, alleging poor workmanship

arrow_forward_ios