A Florida man pleaded guilty yesterday in Bridgeport federal court to conspiracy, money laundering and tax evasion offenses related to multiple schemes to defraud foreign investors and financial institutions.

According to court documents and statements made in court, Robert Matthews, 61, was a real estate developer in charge of The Palm House Hotel, a property that he sought to develop in Palm Beach, Florida. His wife, Maria Matthews, 52, also pleaded guilty in Bridgeport to tax evasion. Robert and Maria maintained residences in both Florida and Connecticut.

Robert had applied for permanent residence in the U.S. through the EB-5 visa program, commonly known as a “green card,” while working on a development project in the U.S.

The PHH was a development project advertised by an intermediary called the South Atlantic Regional Center LLC to EB-5 investors between approximately 2012 and 2014. Robert purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009. He reacquired control of the property through an entity called Palm House LLC in August 2013.

However, Robert’s brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.

In pleading guilty, Robert admitted that he and others defrauded EB-5 investors by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople and politicians “will be a part of the club,” and that Gerry was a member of the Palm House LLC management team and was the 99 percent owner of the project.

EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC. SARC, in turn, provided EB-5 money earmarked for PHH use into accounts controlled by Robert Matthews and his associates.

While Gerry was the nominal 99 percent owner of Palm House LLC, Robert controlled the company. Robert and others used EB-5 funding for purposes not related to the PHH project, including for Robert and Maria’s personal gain. In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club.

As part of this scheme, Robert and others moved investor funds through various bank accounts located in Connecticut and Florida. The funds were instead used to pay Robert and Maria’s credit card debts, and to purchase two properties located in Washington Depot, Connecticut.

One of the Washington Depot properties was a property that Robert had previously lost in foreclosure. Robert and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.

Since approximately 2008, Robert and Maria willfully attempted to evade paying federal income tax they owed for the 2005 and 2007 calendar years in multiple ways, including by using limited liability companies, a company bank account and their attorney’s trust account to pay for personal expenses.

The investigation also revealed that, between approximately 2007 and 2009, Robert conspired with others in a scheme to defraud T.D. Banknorth, now TD Bank, out of the proceeds of a construction loan and out of its ability to foreclose on another parcel of property in Nantucket owned by Robert. He also admitted to conspiring with others to defraud JP Morgan Chase Bank by misappropriating insurance proceeds earmarked for repair of one of his Washington Depot properties.

Robert and Maria Matthews are released on bonds pending sentencing. Sentencing dates have not been scheduled. Gerry pleaded guilty to one count of conspiracy to commit wire fraud on March 7, 2018.