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Palm House Robert Matthews EB-5 Clintons Trump Tony Bennett https://therealdeal.com/miami/issues_articles/lost-paradise-at-th... MHiyoo Hf ~ "SOUTH FLORIDA REAL ESTATE NEWS Q SUBSCRIBE MY ACCOUNT Matthews, 61, gave investors the impression that he was a well-known luxury hotel developer with a global track record, including completed projects in New York, Bora Bora and Mexico. There is no evidence of him completing these projects. Instead, his past dealings were mired in controversy and litigation, including another failed condo-hotel project in Nantucket called the Point Breeze that was forced into bankruptcy in 2010. Matthews, who was raised in Massachusetts, moved to Connecticut in the mid-80s after dropping out of college and started buying up apartments and commercial properties in Waterbury. Locals there began drawing comparisons between Matthews and the fictional Jay Gatsby due to his ritzy parties and expensive tastes, according to the Hartford Courant. He owned a 108-foot yacht named the Bon Vivant and claimed to possess North Carolina’s original Bill of Rights, which had been stolen by a Union soldier in 1865 and was recovered by the FBI just over 10 years ago. Adding to the Gatsby comparisons, Matthews became close with Connecticut’s then-governor, John Rowland, in the 90s. The developer used his political connections to secure favorable contracts with the state government, allowing him to purchase government-owned property, among other things, according to the New York Times. To return the favor, Matthews allegedly bought a condo in Washington, D.C., from Rowland through a straw buyer in 1997 for nearly 20 percent more than what the governor had originally paid. The condo sale and other business dealings eventually led to a corruption investigation into Rowland. But Matthews was never charged. So, he headed to South Florida where he first bought the historic Palm House — which needed substantial repairs — in 2006. Then six years later, Matthews began soliciting EB-5 investors for what he called Palm Beach's last opportunity to build a “five-star hotel” 3 of 10 6/26/19, 11:57 AM HOUSE_OVERSIGHT_029522