A Connecticut developer was sentenced to nearly 5½ years behind bars for “multiple schemes to defraud foreign investors and financial institutions,” according to federal authorities.
U.S. District Judge Victor A. Bolden in Bridgeport on Monday sentenced 65-year-old Robert V. Matthews to 65 months in prison, followed by three years of supervised release, for conspiracy, money laundering and tax evasion, stemming from multiple schemes that defrauded investors and financial institutions out about $30 million, prosecutors alleged.
According to authorities, Matthews solicited investments from overseas to develop The Palm House Hotel. He purchased the Palm Beach, Florida property in August 2006, but lost it in foreclosure in 2009.
In August 2013, Matthews repurchased the property through a company, Palm House LLC, which listed his brother, Gerry Matthews, as the primary owner. But authorities say Robert Matthews controlled the company.
Robert Matthews had homes in Florida and Connecticut. His brother is a broker at Matthews Commercial Properties in Middlebury.
According to court documents, Robert Matthews and others defrauded investors by representing that their funds would be used to develop the hotel. He made false claims to lure investors, including claiming that former Presidents Donald Trump and Bill Clinton would be involved in the project, authorities said.
But the hotel was never developed. Instead, Matthews and his associates used the money for their personal gain, according to federal prosecutors.
They moved investor funds through bank accounts, and used the money to pay for Robert Matthews’, and his wife’s, Maria Matthews, credit card debts, and to purchase two properties located in Washington Depot.
In addition, Robert and Maria Matthews evaded paying federal income tax they owed for 2005 and 2007, by using limited liability companies, a company bank account and their attorney’s trust account to pay for personal expenses, according to court documents. The scheme resulted in a loss of roughly $2.75 million in tax revenue, authorities said.
Also, between 2007 and 2009, Robert Matthews conspired with others in a scheme to defraud T.D. Banknorth out of the proceeds of a construction loan in connection with the development of the Point Breeze Hotel in Nantucket, Massachusetts, according to authorities.
Further, between December 2010 and January 2013, Robert Matthews conspired with others to defraud JPMorgan Chase Bank by misappropriating insurance proceeds earmarked for repairs on one of his Washington Depot properties, authorities said.
Robert Matthews pleaded guilty to conspiracy to commit bank fraud and wire fraud, making illegal monetary transactions and tax evasion on April 25, 2019. He was released on a bond and is set to report to prison on Oct. 23.
Restitution will be determined after additional court proceedings.
Three others have been charged in connection with Robert Matthews:
- On April 25, 2019, his wife, Maria Matthews, also known as Mia Matthews, pleaded guilty to tax evasion. She awaits sentencing.
- On March 7, 2018, his brother, Gerry Matthews, pleaded guilty to conspiracy to commit wire fraud. He also awaits sentencing.
- On March 12, 2018, another associate, Nicholas Laudano, pleaded guilty to conspiracy to commit bank fraud and to making illegal monetary transactions. On June 4, he was sentenced to three years of supervised release.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.
The sentencing report for Robert Matthews is below:
