Seven developers and contractors have been sentenced in federal court for their roles in a $36 million fraud scheme that gutted federal low-income housing programs in Florida. The scheme, which spanned from 2006 to 2012, exploited federal tax credits and grant monies meant for affordable housing, instead funneling millions into personal pockets through falsified construction contracts and kickbacks.
Lloyd Boggio, 70, of Coconut Grove, was sentenced to 57 months in prison and ordered to forfeit approximately $7.1 million to the United States. Matthew Greer, 38, of Miami Beach, received 36 months behind bars and must forfeit $16 million. Both served at various times as CEO of Carlisle Development Group (CDG), the Miami-based firm at the center of the fraud. Court documents show they conspired with contractor Michael Runyan, 67, of Lighthouse Point, who was sentenced to six months of home confinement and ordered to forfeit $1.1 million.
Greer and Boggio, along with Runyan, inflated construction contracts submitted to the Florida Housing Finance Corporation (FHFC), the state body administering federal funds. These falsified documents claimed higher development costs to siphon excess tax credits and grants. Over six years, the trio submitted inflated contracts for at least eight projects, securing more than $26 million in unauthorized funding. Kickbacks totaling the same amount flowed back to the conspirators through shell arrangements and hidden payments.
The fraud extended beyond CDG. Gonzalo DeRamon, of Coral Gables, was sentenced to 18 months in prison and must forfeit $4.4 million. Michael Cox, 48, of Miami, received six months of home confinement and forfeits $4.4 million. Both operated Biscayne Housing Group (BHG), which partnered with CDG on two developments. DeRamon and Cox used the same rigged contracting method, working with contractors Rene Sierra, 58, of Southwest Ranches, and Arturo Hevia, 64, of Miramar. Sierra was sentenced to six months home confinement and forfeits $1.2 million; Hevia received three years probation and forfeits $20,000.
Court records reveal more than $6.2 million in kickbacks from Sierra alone, distributed to benefit DeRamon, Cox, Greer, and Boggio. Another $1 million in illicit payments flowed through Hevia. The joint ventures between CDG and BHG allowed the conspirators to replicate the scam across multiple projects, exploiting federal oversight gaps and the complexity of HUD funding requirements.
The case was announced by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; George L. Piro, FBI Miami; Nadine Gurley, HUD-OIG; and Kelly R. Jackson, IRS-CI. The investigation dismantled a sophisticated network of fraud that perverted the mission of affordable housing, turning public trust into private profit. Sentencing took place between November 30 and December 7, 2016.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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