The biggest problem facing Miami has been corruption. Listen to the NPR investigative report, "Affordable House Program Costs More, Shelters Fewer". Local scion Matt Greer is one of the principals nabbed in a federal indictment and prosecution detailed in the NPR report beginning around minute 17.
Greer's mother, ex-mayor of a small south Florida municipality, and father, director of Fairchild Tropical Botanical Gardens, are investors in commercial real estate. You can read our posts on Greer and Fairchild Gardens, here.
Greer's mother, ex-mayor of a small south Florida municipality, and father, director of Fairchild Tropical Botanical Gardens, are investors in commercial real estate. You can read our posts on Greer and Fairchild Gardens, here.
That was before Cox discovered his partners Lloyd Boggio and Matt Greer were stealing money from their developments, and he eventually joined them. Together, according to court records, $34 million was stolen from 14 tax credit projects, including almost $2 million from Labre Place.
"It was a construction kickback scheme," Cox recalls. "The scam was to submit grossly inflated construction numbers to the state in order to get more money than the project required and then have an agreement with the contractor to get it back during construction."
"I convinced myself that this was OK and that I was doing such good works and I was building amazing projects in the community," he adds.
Last year, Boggio, Greer and another partner, Gonzalo DeRamon, pleaded guilty to crimes related to the kickback scheme and were sentenced to prison. Cox was sentenced to home confinement and probation. He cooperated with prosecutors, never spent his portion of the money and returned all of it. But the impact of his theft is lasting.
"At Labre, if the costs had been stated in a correct way, we could have built 10 more housing units. So, that's 10 more people every year that that project could have served," Cox says. "That's 10 lives. So it's those people that really take it on the chin when costs are inflated."
"A program of trust"
In a government office building just a few blocks from Labre Place, Assistant U.S. Attorney Michael Sherwin has spent five years investigating the tax credit program in Florida. He also unraveled the Carlisle/Biscayne theft.
"This program has been described as a subterranean ATM, and only the developers know the PIN," Sherwin says.











