SEC Files a Complaint Against Two Florida Individuals and Business Entities for Orchestrating a $21 Million Hotel Project Scam

Posted on August 24th, 2018 at 9:32 AM
SEC Files a Complaint Against Two Florida Individuals and Business Entities for Orchestrating a $21 Million Hotel Project Scam

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC has filed a lawsuit against Florida businessmen, Joseph J. Walsh Sr. and Robert V. Matthews, along with their companies, Palm House Hotel LLLP and South Atlantic Regional Center LLC, for defrauding at least 88 investors out of $44 million.

According to the SEC’s complaint, Walsh and Matthews offered and sold securities for the acquisition, development, and operation of the Palm Beach Hotel. Moreover, Walsh and Mathews solicited foreign nationals to invest in their hotel project by recommending that they use the EB-5 program, which allows foreign nationals who invest at least $500,000 in the United States to obtain green cards.

Overall, Walsh and Mathews promised sixty Chinese nationals and five citizens of Iran that their funds would be held in escrow until the U.S. Government approved their I-526 petitions for the EB-5 visa program. However, instead of investing their clients’ money as promised, Walsh and Mathews used the funds to make lavish purchases, such as acquiring a luxury yacht and a foreclosed Florida mansion. 

In its complaint, the SEC is seeking civil penalties against Walsh, Mathews and their related entities, disgorgement of their “ill-gotten gains”, plus prejudgment interest.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, sec, florida, scam, hotel

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