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DAXC LLC, Theft of Government Money, Florida 2024
A low-income housing developer, DAXC LLC, has been charged with theft of government money in connection with a $4 million scheme, according to a federal indictment unsealed in the Southern District of Florida.
The indictment alleges that DAXC, an affiliated entity of Pinnacle Housing Group, Inc., submitted inflated construction contracts to the Florida Housing Finance Corporation (FHFC) to obtain federal tax credits and grant monies for low-income housing developments in Florida.
According to the indictment, DAXC’s affiliated contractor solicited bids for concrete shell work for the housing developments, but instead of signing contracts with the lowest bidder, Shell Subcontractor A, at its final bid price, the contractor signed contracts with DAXC at prices inflated from $200,000 to $1.5 million higher.
As a result of DAXC’s fraudulent inflation scheme, the FHFC allocated approximately $4.2 million in excess federal funds. On or about November 8, 2011, the five principals of the affiliated contractor received payments totaling approximately $2.5 million from this contract inflation scheme from DAXC’s bank account.
The United States and DAXC entered into a deferred prosecution agreement filed today pursuant to which DAXC has paid $5.2 million in forfeiture and fines to the United States.
This is the third in a series of prosecutions by the U.S. Attorney’s Office for the Southern District of Florida involving theft of government funds relating to low-income housing developments.
DAXC is charged by Criminal Information with theft of government money, in violation of Title 18, United States Code, Section 641.
The case is being prosecuted by Assistant U.S. Attorneys Michael R. Sherwin, Michael N. Berger, and Evelyn B. Sheehan. U.S. Attorney Randy A. Hummel commended the investigative efforts of HUD-OIG and IRS-CI.
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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