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Federal grand jury investigates Miami-based affordable-housing developer

via @jayhweaver

A Miami federal grand jury is investigating South Florida’s preeminent affordable-housing developer, the Carlisle Development Group, on allegations that it bilked the U.S. government out of millions of dollars in tax subsidies used to finance more than a dozen rental projects in Miami-Dade and Broward counties.

Carlisle is suspected of committing fraud by padding construction costs of the rental apartments to generate higher government-issued tax credits for itself and its investors, according to sources familiar with the probe. Prosecutors are trying to prove that top executives of Carlisle, a for-profit company, worked in cahoots with a Fort Lauderdale building contractor to unlawfully pocket those extra tax credits, the sources said.

The grand jury is focusing on two of Carlisle’s chief executive officers, Matthew S. Greer and retired CEO and founder Lloyd J. Boggio, as well as a general contractor Michael K. Runyan, according to a subpoena obtained by The Miami Herald.

The subpoena, issued in January in connection with “an official criminal investigation of a suspected federal offense,” names Carlisle and its development entities, along with the three businessmen. It seeks loan and other records for two of Carlisle’s rental projects built by Runyan’s Fort Lauderdale company, BJ&K Construction Services, in the low-income Little Haiti and Allapattah neighborhoods.

Both the city and Miami-Dade governments partially financed those high-rise apartment projects, Villa Patricia and Amber Garden, with multimillion-dollar, low-interest loans.

More from Jay Weaver here.