MIAMI (CBSMiami/AP) — Four developers are set to plead guilty to federal charges in connection to a an alleged $36 million affordable housing fraud.READ MORE: Retail Sales Surge Almost Double What Analysts Predicted
Biscayne Housing Group co-founders Michael Cox and Gonzalo DeRamon pleaded guilty Monday to conspiracy charges. Two principals in the Carlisle Development Group — former CEO Matthew Greer and co-founder Lloyd Boggio — are scheduled to plead guilty later this week.
B&K Construction Services President Michael Runyan also pleaded guilty to a conspiracy charge Monday.READ MORE: Thousands Flock To South Beach To Take Advantage That Countywide Curfew Has Been Lifted
Federal prosecutors said the men and others stole $36 million in federal housing subsidies by inflating construction costs and taking kickbacks. Most of the projects were in inner-city Miami-area neighborhoods, including Overtown, Brownsville and Little Haiti.
The Miami Herald reports prosecutors have recovered about $11 million of the stolen money.MORE NEWS: Neighbors 4 Neighbors, Miami Dolphins To Serve 500 Hot Meals To Miami-Dade Schools Families
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