Former Used Car Salesman and Sidekick in Palm Beach EB5 Disaster
Update 24 March 2018
UNITED STATES DISTRICT COURT, DISTRICT OF CONNECTICUT issues several criminal indictments for multiple violations of federal law and conspiracy.
Several guilty pleas have been obtained.
South Atlantic Regional Center (“SARC”), Mr. Joseph Walsh, and his companies have been absolved from blame or fault or wrongdoing in these indictments and SARC was identified as a victim in this fraudulent scheme perpetrated by several individuals.
The first indictment is, of one count of Conspiracy to Commit Wire Fraud, in United States of America v. Gerry Matthews of Connecticut. He pled guilty to the charges.
Mr. Robert Matthews was indicted on 20 counts of fraud and conspiracy. Whether or not he pleads guilty will determine if the Palm House saga is actually over.
Mr. Nick Laudano was also indicted on several counts of conspiracy to commit fraud. Mr. Laudano also plead guilty to the charges.
Mr. Les Evans, of Palm Beach, an attorney, was subsequently charged with 11 counts of conspiracy and fraud, and was released on bail.
Ryan Black is supposedly putting together an offer for the hotel even though his involvement may well open the door to dangerous time consuming law suits from the Matthews side.
Glenn Straub is the man holding all the cards, he has the 1st mortgage on the property that is already in default.
The statement from Joe Walsh at USREDA
These events represent a significant outcome for the EB5 investors, and Palm House Hotel, LLLP. The General Partner, Mr. Joseph Walsh, Sr. has consistently stated that he and his companies have been defrauded by the Matthews family and other co-conspirators; Robert Matthews, Gerry Matthews, Nick Laudano and Les Evans and others, as outlined in a civil RICO suit, filed by General Partner, SARC and Palm House Hotel, LLLP. The RICO suit outlines how fraudulent documents were prepared by several attorneys, purchases of luxury yachts, lavish homes, luxury cars, jewelry, vacations and the like.
These indictments, and the guilty pleas to date, show conclusively that these charges were founded on facts. It has taken many months to gather and assemble the forensic accounting evidence of the multiple companies, off-shore accounts and entities, properties that were purchased in the general contractor’s name, family trusts and other means specifically designed to hide millions of dollars of transactions using several accounts, over several years.
Mr. Walsh thanks and applauds Mr. Brian Aryai, of ICON Compliance Services, a former U.S. Treasury and Homeland Security Senior Special Agent and certified public accountant among other impressive credentials. Mr. Aryai was one of the main forensic investigators and advisors in cases of national importance, such as the Bernie Madoff case. His expertise in sophisticated and complex fraud investigations has been instrumental in bringing this case to its inevitable conclusion. Mr. Aryai and his team worked tirelessly to provide several agencies a significant 1100-page report of investigation and numerous exhibits, in which the fraud and conspiracy was uncovered and brought to the point of prosecution.
Former Key West Used Car Salesman Joe Walsh and his Sidekick Ryan Black are attempting to take control of Palm House with no actual money, just a promise that someone will have a look for the money. This is the latest installment of the EB5 drama’s surrounding the former Key West Used Car Salesman Joe Walsh. Of course Joe Walsh was nowhere to be found, he has not set foot in the USA for years, instead his Sidekick Ryan Black was in attendance.
After a massive failure at Highland Global, a project owned by Steve Nicholas the son of the golfer Jack Nicholas where 17 investors EB5 investors were involved, the former Key West Used Car Salesman Joe Walsh was involved in the funding of Palm House a project owned at the time by Real Estate Tycoon Robert Matthews of Palm Beach.
Despite an agreement to fund the development of Palm House Joe Walsh fell well short of his obligations and then after starving the project of cash the former Used Car Salesman and his Sidekick Ryan Black decided to try to take the hotel via a litany of litigation, that of course has also failed.
In the meantime the “never say die” Real Estate Tycoon Robert Matthews was left with the issues of trying to fund the project now buried in litigation.
But true to his form Robert Matthews delivered, yesterday Robert Matthews revealed he has assembled a team with actual money, not a promise of looking for money, to complete the project, something that all involved including the investors need to happen.
A lawsuit alleges that the Palm House condominium-hotel is at the center of a vast criminal scheme in which more than 50 foreign investors were defrauded out of $50 million.
According to the suit, a web of conspirators preyed on foreign nationals by inducing them to each invest $500,000, plus a $40,000 administrative fee, into the hotel.
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