The estate of the developer of the Palm House Hotel, a failed EB-5 project, is now expected to head to auction, as he faces charges tied to the development.
Bids would start at $31 million for Robert Matthew’s 15,849-square-foot waterfront home at 101 Casa Bendita in Palm Beach, the Palm Beach Daily News reported. A motion has been filed before the U.S. Bankruptcy Court that would send the property to auction on March 28, where the sale would go to the highest bidder. A hearing is set for Feb. 5 for final approval.
The proceeds will go to pay Matthew’s creditors, including DB Private Wealth Mortgage Ltd., a Palm Beach lender which claims its owed $28 million by Matthews, the Palm Beach Daily News reported.
Federal officials have charged Matthews with multiple counts of wire and bank fraud and money laundering over his planned Palm House Hotel development at 160 Royal Palm Way. The project is still unfinished and prosecutors allege Matthews used money solicited from EB-5 investors for his personal gain.
In a separate lawsuit filed by a group of EB-5 investors, Matthew’s development group allegedly claimed that famous celebrities and politicians such as Bill Clinton, Donald Trump, Celine Dion and Bill Koch would serve on the Palm House’s advisory board when, in fact, they did not.
Matthews has pleaded not guilty to the charges.
Related Companies recently offered $32 million for the Palm House Hotel property that is also heading to auction soon. [Palm Beach Daily News] — Keith Larsen