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Florida Developers To Plead Guilty In $36M Affordable Housing Scam

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MIAMI (CBSMiami/AP) — Four developers are set to plead guilty to federal charges in connection to a an alleged $36 million affordable housing fraud.

Biscayne Housing Group co-founders Michael Cox and Gonzalo DeRamon pleaded guilty Monday to conspiracy charges. Two principals in the Carlisle Development Group — former CEO Matthew Greer and co-founder Lloyd Boggio — are scheduled to plead guilty later this week.

B&K Construction Services President Michael Runyan also pleaded guilty to a conspiracy charge Monday.

Federal prosecutors said the men and others stole $36 million in federal housing subsidies by inflating construction costs and taking kickbacks. Most of the projects were in inner-city Miami-area neighborhoods, including Overtown, Brownsville and Little Haiti.

The Miami Herald reports prosecutors have recovered about $11 million of the stolen money.

(TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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