Six Florida residents, including former executives of Carlisle Development Group (CDG) and co-founders of Biscayne Housing Group (BHG), have been charged with conspiring to defraud the government by stealing millions of dollars intended for the construction of affordable housing.

Federal authorities have charged the following:

  • Matthew Greer, 37, of Miami Beach, a former CEO of Carlisle, a low-income housing developer in Miami;
  • Lloyd Boggio, 69, of Coconut Grove, a former CEO of Carlisle;
  • Michael Runyan, 66, of Lighthouse Point, the CEO of BJ&K Construction, Inc., a general contractor in Fort Lauderdale;
  • Gonzalo DeRamon, 51, of Coral Gables, a co-founder of Biscayne Housing, a low-income housing developer in Miami;
  • Michael Cox, 47, of Miami, a co-founder of Biscayne Housing; and
  • Rene Sierra, 57, of Southwest Ranches, a founder of Siltek Affordable Housing, a general contractor in Plantation. 

Today’s charges come after several long years of investigation, and it marks the latest step in the fall of Carlisle Development, once one of the largest affordable housing developers in the country.

Court documents allege that as a result of the fraudulently inflated contracts, Florida Housing Finance Corp. (FHFC) allocated more than $36 million in excess housing tax credits and grant monies for 14 low-income developments built by Carlisle and Biscayne Housing.

“Motivated by personal greed, the defendants are charged with stealing tens of millions of dollars of federal funds intended for the construction of housing for the poor, the homeless, and the elderly of South Florida,” said U.S. attorney Wilfredo A. Ferrer in a statement. “Our office will vigorously pursue those who line their pockets with federal resources that are intended to benefit vulnerable individuals and families.” 

Kelly R. Jackson, special agent in charge, IRS criminal investigation, stated, “The low-income housing tax credit (LIHTC) was created to encourage investment and is an important resource for creating affordable housing in South Florida. LIHTCs were not intended to be a vehicle for get-rich-quick kickback schemes.”

Greer, Boggio, and DeRamon were charged with two counts of conspiracy to commit theft of government money and property, in violation of Title 18, U.S. Code, Section 371, an offense punishable by a statutory maximum term of five years in prison for each count.

Runyan, Cox, and Sierra were charged with one count of conspiracy to commit theft of government money and property, in violation of Title 18, U.S. Code, Section 371, an offense punishable by a statutory maximum term of five years in prison.

According to allegations contained in the charging documents, as part of the LIHTC and grant allocation process, FHFC required  developers to submit proposed development costs, including a construction contract signed by the developer and contractor. Federal officials allege the defendants conspired to inflate the costs of those contracts in order to obtain excess federal financing, and then use the proceeds for their own personal gain. 

Attorneys for several of the defendants could not be reached at press time.

According to a press release from the U.S. Attorney’s Office, Southern District of Florida:

From 2007 to 2012, CDG executives Greer and Boggio allegedly conspired with BJ&K executive Runyan to steal federal tax credits and grant monies, by submitting fraudulently inflated construction contracts to FHFC for eight different low-income housing developments in Miami-Dade County and elsewhere: Brownsville Transit Village II (a 100-unit apartment complex in Brownsville), Brownsville Transit Village III (a 103-unit apartment complex in Brownsville), Brownsville Transit Village IV (a 102-unit apartment complex in Brownsville), Everett Stewart Senior Village (a 96-unit apartment complex in Brownsville), Metro (a 90-unit apartment complex in Overtown), Poinciana Grove (an 80-unit apartment complex in Little Haiti), Villa Patricia III (an 89-unit Apartment complex in Little Haiti), and Wahneta Palms (a 64-unit apartment complex in Polk County). 

From 2009 to 2012, BHG founders DeRamon and Cox allegedly conspired with Siltek owner Sierra to steal federal tax credits and grant monies by submitting fraudulently inflated construction contracts to FHFC for four different low-income housing developments in Miami-Dade County: Bonita Cove (a 60-unit apartment complex in Little Haiti), Labre Place (a 90-unit apartment complex in Overtown), Notre Dame (a 64-unit apartment complex in Little Haiti), and Village Carver II (a 90-unit apartment complex in Little Haiti). In addition, DeRamon, Cox, Greer, and Boggio, as alleged in the information, had a side agreement to share in the illegal kickback payments for Labre Place and Village Carver II. 

From 2009 to 2012, BHG founders DeRamon and Cox allegedly conspired with Arturo Hevia to steal federal tax credits and grant monies by submitting fraudulently inflated construction contracts to FHFC for two different low-income housing developments in Miami-Dade County: Casa Matias (an 80-unit apartment complex in Homestead) and Georgia Ayers (a 72-unit apartment complex in Opa-Locka).