Publicly available records published by the Securities and Exchange Commission (SEC) on August 3, 2018 indicate that the SEC has charged two Florida individuals, Joseph Walsh and Robert Matthews, in connection with a securities offering fraud that allegedly targeted immigrant investors. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Walsh and/or Mr. Matthews.
The SEC alleges that for more than two years Joseph Walsh and Robert Matthews “defrauded dozens of foreign investors” who were participants in the US government’s EB-5 program offering foreign nationals the chance to receive permanent US residency by making investments in US-based projects that create jobs. The SEC alleges that Mr. Walsh “raised close to $44 million from foreign investors which, through a loan, was to be used to acquire, develop, and operate a Palm Beach hotel controlled by Matthews.” However, according to the SEC, Mr. Walsh allegedly misappropriated over $13 million of those funds, and Mr. Matthews misappropriated about $8 million, “some of which he used to acquire a 151-foot yacht and to purchase his former Connecticut home out of foreclosure.” The SEC also alleges that Walsh and two companies under his control, Palm House Hotel and South Atlantic Regional Center, misrepresented material facts to investors regarding an escrow account that was purported to hold investor funds before they were disbursed to Palm House Hotel, and he also allegedly made misrepresentations regarding his background and Mr. Matthews’ background.
The SEC filed its complaint in the Southern District of Florida. It has charged Mr. Walsh, Palm House Hotel, and South Atlantic Regional Center with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934; it seeks “permanent injunctions, disgorgement of ill-gotten gains with interest, and penalties.” The SEC has also charged Mr. Matthews with violations of the same acts, and with aiding and abetting violations by Mr. Walsh, Palm House Hotel, and the South Atlantic Regional Center. The charges remain pending.
If you have lost money investing in the Palm House Hotel project via Matthew Walsh, you may be entitled to recoup your losses. Call Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis, which means we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.