Seven Sentenced in $36 Million Miami Low-Income Housing Fraud | Daily Business Review

15 Dec

Seven defendants have been sentenced for their involvement in an elaborate $36 million housing tax credit scheme at Miami-based Carlisle Development Group, which was at one time the largest builder of low-income housing in Florida.

Matthew Greer, the company’s former CEO, pleaded guilty last year to two counts of conspiracy to commit theft of government money in a fraud involving 10 housing developments.

The developer was accused of pocketing millions of dollars in government subsidies intended to fund housing for people in some of Miami-Dade County’s poorest neighborhoods like Overtown, Brownsville and Little Haiti.

Greer, son of high-profile attorneys Bruce and Evelyn Greer, was slapped with three years in prison and ordered to forfeit about $16 million to the U.S., federal prosecutors said.

Lloyd Boggio, a Carlisle co-founder, was sentenced to nearly five years in prison and ordered to turn over about $7.1 million.

The fraud also brought down Michael Runyan, Gonzalo DeRamon and Michael Cox, who pleaded guilty to conspiracy.

“From 2006 to 2012, Greer, Boggio and Runyan caused the submission of fraudulently inflated construction contracts on at least eight different low-income housing developments, which resulted in the allocation of at least $26 million in excess federal tax credits and grant monies,” the Justice Department said in a news release Monday.

DeRamon and Cox of Biscayne Housing Group also submitted fraudulently inflated contracts to the Florida Housing Finance Corp. for the receipt of excess federal tax credits and grants. DeRamon was sentenced to 18 months in prison and ordered to forfeit $4.4 million. Cox was sentenced to six months’ home confinement and ordered to turn over the same amount.

Runyan, president of BJ&K Construction Services Inc., was sentenced to six months’ home confinement and ordered to pay the U.S. government about $1.1 million.

Rene Sierra, founder of Siltek Affordable Housing LLC, was sentenced to six months’ home confinement and ordered to pay $1.2 million.

Arturo Hevia, founder of Design Management and Builders Construction, was placed on probation for three years and ordered to pay $20,000.

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