HOUSE_OVERSIGHT_029521.jpg
1.87 MB
Extraction Summary
5
People
5
Organizations
4
Locations
2
Events
2
Relationships
3
Quotes
Document Information
Type:
News article printout (the real deal) / congressional record
File Size:
1.87 MB
Summary
This document is a printout of a news article regarding the Palm House EB-5 fraud case, stamped as a House Oversight record. It details how developer Robert Matthews and contractor Nicholas Laudano pleaded guilty to fraud, misusing investor funds for personal luxuries like a yacht named 'Alibi'. The article highlights the lack of criminal charges against regional center director Joseph Walsh Sr., who allegedly siphoned nearly $9.5 million, and criticizes the lack of regulation in the EB-5 visa program.
People (5)
| Name | Role | Context |
|---|---|---|
| Robert Matthews | Developer |
Pleaded guilty to fraud charges; utilized EB-5 funding for personal expenses.
|
| Nicholas Laudano | General Contractor |
Pleaded guilty to fraud charges in federal court.
|
| Joseph Walsh Sr. | Director |
Director of SARC; allegedly siphoned $9.5 million; charged civilly by SEC.
|
| David George | Attorney |
Attorney at George Gesten McDonald PLLC; representing EB-5 investors.
|
| Doug Litowitz | Attorney |
Chicago attorney representing Chinese clients; commented on the lack of oversight.
|
Organizations (5)
| Name | Type | Context |
|---|---|---|
| South Atlantic Regional Center (SARC) |
Allegedly siphoned investor money; middlemen between developers and investors.
|
|
| SEC |
Filed a civil complaint against Joseph Walsh Sr.
|
|
| George Gesten McDonald PLLC |
Representing investors in the Palm House lawsuit.
|
|
| Palm House |
Failed development project central to the fraud case.
|
|
| House Oversight Committee |
Source of the document (indicated by footer stamp).
|
Timeline (2 events)
Recently (relative to June 2019)
Robert Matthews and Nicholas Laudano pleaded guilty to fraud charges.
Federal Court
Recently (relative to June 2019)
Locations (4)
| Location | Context |
|---|---|
|
Development project location.
|
|
|
Location of another hotel project Walsh allegedly solicited investors for.
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|
|
Location where a lawsuit was filed.
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|
|
Venue for fraud pleas and SEC complaints.
|
Relationships (2)
Both pleaded guilty to fraud charges regarding the Palm House project.
Document identifies Walsh as the director of the South Atlantic Regional Center.
Key Quotes (3)
"This is the most egregious fraud case I have ever seen"Source
HOUSE_OVERSIGHT_029521.jpg
Quote #1
"No one is watching the regional centers"Source
HOUSE_OVERSIGHT_029521.jpg
Quote #2
"The current system, critics say, is a petri dish for fraud that allows bad actors to come and go"Source
HOUSE_OVERSIGHT_029521.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,202 characters)
Palm House Robert Matthews EB-5 Clintons Trump Tony Bennett https://therealdeal.com/miami/issues_articles/lost-paradise-at-th...
SOUTH FLORIDA REAL ESTATE NEWS
SUBSCRIBE MY ACCOUNT
in EB-5 funding for personal expenses, including the purchase of a 151-foot yacht named "Alibi" and his own debt payments.
Matthews and the project’s general contractor, Nicholas Laudano, recently pleaded guilty to fraud charges in federal court, while the 91 EB-5 backers lost their $500,000 investments and never received their green cards.
The EB-5 regional center in charge of marketing the Palm House project and soliciting the investments, however, has not been criminally charged. The South Atlantic Regional Center (SARC) and its director, Joseph Walsh Sr., were allegedly able to siphon nearly $9.5 million of the foreign investors’ money, according to a civil complaint filed by the SEC in federal court.
To date, Walsh has only been charged civilly. He was allegedly even found recently trying to solicit other EB-5 investors for another hotel project in Miami Beach, per a lawsuit filed in Palm Beach County.
“This is the most egregious fraud case I have ever seen,” said attorney David George, of George Gesten McDonald PLLC, who’s representing EB-5 investors in the Palm House lawsuit.
Regional centers like SARC function as middlemen between developers and their foreign investors. But despite the key role they play in the EB-5 process, there’s minimal regulation over how they operate and few safeguards to protect investors.
[Image Caption] Robert Matthews
The current system, critics say, is a petri dish for fraud that allows bad actors to come and go — in many cases with no criminal prosecutions. At the same time, lobbyists for the real estate industry have pushed to ensure these rules remain in place.
“No one is watching the regional centers,” said Doug Litowitz, a Chicago attorney who was not involved in the Palm House lawsuit but represents Chinese clients in other
2 of 10 6/26/19, 11:57 AM
HOUSE_OVERSIGHT_029521
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