Federal court postpones Palm House trial until at least September

The Palm House is located at 160 Royal Palm Way, Palm Beach.

A federal court in Connecticut has delayed until at least Sept. 4 the fraud trial of Palm House developer Robert “Bob” V. Matthews and Palm Beach real estate attorney Leslie Robert Evans. Both men have pleaded not guilty to multiple felony fraud charges related to alleged financial improprieties at the beleaguered Palm House hotel-condominium project in Palm Beach.

The single trial for Matthews, 60, and Evans, 70, originally was scheduled to begin Monday with jury selection. But prosecutors have agreed to a 90-day stay requested by attorneys for the two Palm Beach residents.

Evans’ attorneys told the court they needed more time to review the government’s “voluminous” evidence and to prepare for trial.

In a May 29 motion, Evans’ attorneys wrote that on May 3, the government had released to them a hard drive as part of the evidence-discovery process. The hard drive had about 198 gigabytes of data, attorneys Stanley A. Twardy Jr. and Daniel E. Wenner told the court.

The criminal charges stem from a March indictment released by a Connecticut grand jury. The indictment alleged Matthews, Evans and others conspired to scam foreign investors out of money intended to help renovate the Palm House property. That money was solicited through the federal EB-5 program, which offers foreign nationals and their families expedited permanent immigration visas — commonly known as green cards — into the United States in exchange for investing in U.S. construction projects under specific rules, the indictment said. Money was transferred between accounts in Florida and Connecticut, according to the indictment.

The Palm House renovation project at 160 Royal Palm Way has been entangled for years in legal battles, including lawsuits, foreclosure proceedings and code violations. Construction ceased at the site in October 2014, and the project is now overseen by a court-appointed receiver.

Evans has been free on a $250,000 bond since March 15, when he and Matthews were arrested at their Palm Beach homes.

As part of Matthews’ release conditions, he was required to post a $500,000 bond and wear a location-monitoring device. At a hearing Wednesday in Bridgeport, Conn., U.S. Judge Victor A. Bolton granted the developer’s request to discontinue wearing the device.

At the same hearing, an attorney for Matthews successfully presented oral arguments to stay the trial for 90 days.

A federal court in Connecticut has delayed until at least Sept. 4 the fraud trial of Palm House developer Robert “Bob” V. Matthews and Palm Beach real estate attorney Leslie Robert Evans. Both men have pleaded not guilty to multiple felony fraud charges related to alleged financial improprieties at the beleaguered Palm House hotel-condominium project in Palm Beach.

The single trial for Matthews, 60, and Evans, 70, originally was scheduled to begin Monday with jury selection. But prosecutors have agreed to a 90-day stay requested by attorneys for the two Palm Beach residents.

Evans’ attorneys told the court they needed more time to review the government’s “voluminous” evidence and to prepare for trial.

In a May 29 motion, Evans’ attorneys wrote that on May 3, the government had released to them a hard drive as part of the evidence-discovery process. The hard drive had about 198 gigabytes of data, attorneys Stanley A. Twardy Jr. and Daniel E. Wenner told the court.

The criminal charges stem from a March indictment released by a Connecticut grand jury. The indictment alleged Matthews, Evans and others conspired to scam foreign investors out of money intended to help renovate the Palm House property. That money was solicited through the federal EB-5 program, which offers foreign nationals and their families expedited permanent immigration visas — commonly known as green cards — into the United States in exchange for investing in U.S. construction projects under specific rules, the indictment said. Money was transferred between accounts in Florida and Connecticut, according to the indictment.

The Palm House renovation project at 160 Royal Palm Way has been entangled for years in legal battles, including lawsuits, foreclosure proceedings and code violations. Construction ceased at the site in October 2014, and the project is now overseen by a court-appointed receiver.

Evans has been free on a $250,000 bond since March 15, when he and Matthews were arrested at their Palm Beach homes.

As part of Matthews’ release conditions, he was required to post a $500,000 bond and wear a location-monitoring device. At a hearing Wednesday in Bridgeport, Conn., U.S. Judge Victor A. Bolton granted the developer’s request to discontinue wearing the device.

At the same hearing, an attorney for Matthews successfully presented oral arguments to stay the trial for 90 days.

The U.S. Attorney’s office for the District of Connecticut charged Matthews with eight counts of wire fraud, one count of bank fraud, one count of conspiracy to commit bank fraud and wire fraud, and 10 counts of illegal monetary transactions. He faces up to 320 years in prison if convicted on all counts, according to a statement about the case released in March by the U.S. Attorney’s office.

Evans has been charged with eight counts of wire fraud, one count of bank fraud, one count of conspiracy to commit bank fraud and wire fraud, and one count of illegal monetary transactions. Convictions on all those counts would carry a maximum penalty of up to 230 years, the U.S. Attorney’s office said.

Two other men in related cases have been scheduled for sentencing hearings in June 2019 in the U.S. District Court in Connecticut. Gerry Matthews, who is Matthews’ brother, and Boynton Beach construction executive Nick Laudano entered plea agreements in their cases.

Gerry Matthews, a commerical real estate broker in Connecticut, pleaded guilty to one felony count of conspiring to commit wire fraud and could face a 20-year prison sentence. Laudano faces a maximum sentence of 40 years after pleading guilty to two felony counts — conspiracy to commit bank fraud and taking part in an illegal monetary transaction.

https://www.palmbeachdailynews.com/news/local/federal-court-postpones-palm-house-trial-until-least-september/0JBk4SB2YjaPaaKPKalj6J/

Mentions

• Palm House Hotel

Litigation Cases

• Ryan Black vs Gerry Matthews, Palm House LLC

States

• Florida