Two prominent developers have plead guilty to federal fraud charges for stealing millions of tax-payer dollars intended for low-income housing developments.
Jay Weaver reports on the unfolding federal prosecution "of an elaborate affordable-housing racket that cost taxpayers $36 million." To summarize the fraud: Michael Cox and Gonzalo DeRamon, co-founders of the Biscayne Housing Group, conspired with the top two principals of the Carlisle Development Group ("once the state’s biggest affordable housing developer," according to Weaver) as well as two South Florida contractors who already pleaded guilty.
Weaver's original report broke the news that Cox and deRamon intended to plead guilty. In an updated post, Weaver notes that "[c]ombined, Cox and DeRamon pocketed between $7 million and $9.5 million in illegal kickbacks from contractors in their Miami-Dade affordable-housing developments."
Weaver's reports provide more details about the reach of the conspiracy.
FULL STORY: Feds: Miami developers, contractor to plead guilty in $36 million affordable-housing scam
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Borough of Carlisle
Smith Gee Studio
City of Camden Redevelopment Agency
City of Astoria
Transportation Research & Education Center (TREC) at Portland State University
City of Camden Redevelopment Agency
Municipality of Princeton (NJ)