$36 Million Affordable Housing Scam Exposed in Miami

Two prominent developers have plead guilty to federal fraud charges for stealing millions of tax-payer dollars intended for low-income housing developments.

1 minute read

September 11, 2015, 9:00 AM PDT

By James Brasuell @CasualBrasuell


Jay Weaver reports on the unfolding federal prosecution "of an elaborate affordable-housing racket that cost taxpayers $36 million." To summarize the fraud: Michael Cox and Gonzalo DeRamon, co-founders of the Biscayne Housing Group, conspired with the top two principals of the Carlisle Development Group ("once the state’s biggest affordable housing developer," according to Weaver) as well as two South Florida contractors who already pleaded guilty.

Weaver's original report broke the news that Cox and deRamon intended to plead guilty. In an updated post, Weaver notes that "[c]ombined, Cox and DeRamon pocketed between $7 million and $9.5 million in illegal kickbacks from contractors in their Miami-Dade affordable-housing developments."

Weaver's reports provide more details about the reach of the conspiracy.

Monday, August 31, 2015 in Miami Herald

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