EB-5 Palm House project linked to Trump charity event and alleged fraud by developer Robert Matthews

Palm House Robert Matthews EB-5 Clintons Trump Tony Bennett https://therealdeal.com/miami/issues_articles/lost-paradise-at-th... 4 of 10 ~ "SOUTH FLORIDA REAL ESTATE NEWS Q SUBSCRIBE MY ACCOUNT investors generally function as individual lenders on those projects, but they rarely have a way to collect money if the project fails. “This is not unlike any other industry that can produce a toxic product like the opioid industry or the tobacco industry. There is a powerful interest involved.” “The whole thing has to do with corralling desperate people in China, who believe that Americans wouldn't lie to them out right,” Litowitz said. And while the program was designed to create jobs in rural and distressed regions known as “targeted employment areas,” communities like Palm Beach — a top destination for wealthy retirees with a median household income of more than $110,000 — somehow met the same criteria. Florida's Department of Economic Opportunity approved the Palm House project for such a designation in 2012 because Palm Beach had an unemployment rate of 18.5 percent, above “the qualifying rate of 13.4 percent for that time period,’ according to the state agency. Other EB-5 projects, including Hudson Yards in New York, the largest private real estate development in the country, were also able to take advantage of similar demographics. Without mentioning his past dealings in Connecticut or in Nantucket, Matthews touted his wife Mia Matthews’ success as an actress, singer and star of the Nickelodeon show “Every Witch Way” and CW’s “South Beach,” which lasted all of one season. To further show off his connections and status in Palm Beach, he would take EB-5 immigration agents from China to a Mar-a-Lago charity event to meet Trump and take picture with him, according to a complaint filed by EB-5 investors in Palm Beach County Court. The developer’s investment pitch also failed to mention that it was actually his second time acquiring the Palm House. And there was no mention of the fact that 6/26/19, 11:57 AM HOUSE_OVERSIGHT_029523