Developer of Banyan Cay Resort in West Palm faces charge tied to $65M healthcare fraud

Domenic Gatto surrendered but entered no plea

Miami /
Apr.April 28, 2021 03:30 PM
Domenic Gatto and Banyan Cay Resort and Club (Linkedin, iStock, Banyan Cay)

Domenic Gatto and Banyan Cay Resort and Club (Linkedin, iStock, Banyan Cay)

The developer of Banyan Cay Resort and Club in West Palm Beach was charged in connection with a $65 million national healthcare fraud.

Whether this spells trouble for the mega-project remains unclear.

Domenic Gatto faces one count of conspiracy to commit healthcare fraud in connection to an alleged scheme to place unnecessary orders for orthotic braces for Medicare beneficiaries, The Palm Beach Post reported.

Gatto, who was one of five charged, has surrendered. But he entered no plea and has not been formally indicted. The 46-year-old Palm Beach Gardens resident appeared in front of a federal magistrate in New Jersey via video from the West Palm Beach federal courthouse.

The Justice Department alleges that as an owner-operator of an orthotic brace supplier, Gatto arranged for orders to be placed with suppliers of the medical equipment in New Jersey and Florida. He paid co-conspirators kickbacks and bribes “for each federal healthcare beneficiary for whom orthotic brace orders were sold to orthotic brace suppliers to be billed to … federal and private healthcare benefit programs,” according to the Justice Department.

Gatto’s attorney, Seth Levine, told The Post the accusations are “meritless” and will be disputed in court.

The long-delayed Banyan Cay will include a luxury hotel that was expected to be completed three years ago, The Post reported. Aside from construction stops and starts, the project also changed hotel flags from a Noble House to a Hyatt Destination Hotels.

The project also is planned to have a 170-unit, high-end condominium tower and 150 single-family homes. An 18-hole, Jack Nicklaus-designed golf course already opened.

Gatto, through affiliate Banyan Cay Development, in 2015 paid $26 million for the 250-acre former President Country Club golf course development site off Congress Avenue and east of I-95.

Gatto scored a $61 million hotel construction loan for the project in 2018.

Real estate attorneys and an anonymous source told The Post it’s unlikely the criminal charge will impact the financing, although it could give lender Calmwater Capital qualms about its affiliation with Gatto.

[The Palm Beach Post] – Lidia Dinkova






    Related Articles

    arrow_forward_ios
    Pascal Nicolai and the oceanfront property (Douglas Elliman, Sabal Development)
    Spec home developer pays $10M for oceanfront lot
    Spec home developer pays $10M for oceanfront lot
    Value Store It President Carlos Diaz with the two properties (Diaz)
    Value Store It buys two Palm Beach County properties for $35M
    Value Store It buys two Palm Beach County properties for $35M
    Clockwise from lower left: John Cooper and Allen Morris from The Allen Morris Company and Stormont Hospitality and Camilo Lopez and Jorge Escobar from Black Salmon (Ander & Co)
    AMS Hospitality, Black Salmon buy Circa 39 hotel in Miami Beach
    AMS Hospitality, Black Salmon buy Circa 39 hotel in Miami Beach
    Dr. Ernst A. Langner and Nataly Langner with their Palm Beach estate (Compass, Dr. E.A. Langner-Foundation)
    German entrepreneur sells oceanfront Palm Beach estate for $110M
    German entrepreneur sells oceanfront Palm Beach estate for $110M
    Edgar Bronfman Jr. and his Palm Beach home (Getty, 200 Regents / Sotheby's)
    Liquor dynasty scion Edgar Bronfman Jr. buys Palm Beach home for $12M
    Liquor dynasty scion Edgar Bronfman Jr. buys Palm Beach home for $12M
    Glenn Straub and 2855 Hurlingham Drive (Casino.org, Google Maps)
    Glenn Straub buys Wellington estate for $9M
    Glenn Straub buys Wellington estate for $9M
    (Christian J. Angle Real Estate)
    Waterfront Palm Beach home sells for $33M after nearly 30 years in family’s hands
    Waterfront Palm Beach home sells for $33M after nearly 30 years in family’s hands
    Avenir Development's Rosa Schechter and the Avenir project in Palm Beach Gardens
    Avenir developer in Palm Beach Gardens pays $69M for more acreage
    Avenir developer in Palm Beach Gardens pays $69M for more acreage
    arrow_forward_ios

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

    Loading...