Brothers bought 14 Broward houses in a $2.5 million COVID relief fraud, feds say

David J. Neal
·6 min read

A federal court indictment claims Miramar’s Carl Charles and his brother, Patrick Charles, got over $2.5 million in COVID-19 relief funds in 2020 and 2021 by claiming pandemic hardship for businesses that had no revenue or existed only on paper before the pandemic.

Broward County property records say Carl Charles and companies run by him bought at least 14 houses during the period federal prosecutors say the brothers ran the scam. Those companies or companies with a connection to Charles still own nine of those homes.

READ MORE: Fort Lauderdale businessman raked in COVID-19 relief loans, splurged on himself

Each Charles brother has been charged with seven counts of wire fraud in Fort Lauderdale federal court. They had their first appearances last week and are scheduled to be arraigned on April 28. A trial date is set for May 22.

Kenneth Padowitz and Joshua Padowitz are listed as attorneys for Carl Charles, 43. Michael Weinstein is listed as representing 41-year-old Patrick Charles, who lives in unincorporated Palm Beach County.

Business from junk to exotic cars to “Scholars of Tomorrow”

In March 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act began dishing out Economic Injury Disaster Loans of up to $150,000 to businesses with 500 or fewer employees that suffered losses because of the pandemic.

As described by the Department of Justice, the Charles brothers’ alleged scheme wasn’t complicated. Justice says they and their cohorts applied for $4,975,461 in the disaster loans and advances “for purported businesses that did not exist before the start of the COVID-19 pandemic and did not have any revenue or other business activity.”

Of that money, the indictment says, their ersatz businesses received $2,537,700 from March 2020 through December 2021.

State records say these companies with Carl Charles as an officer or agent registered with the state or reinstated their state registration from March 2020 through December 2021:

▪ Charles Global Enterprises, registered March 26, 2020.

▪ Charles Import & Export Corp, registered April 23, 2020.

▪ Charles Tree & Landscaping Services, registered April 23, 2020.

▪ Charles Junk Removal & Hauling Services, registered April 23, 2020.

▪ Charles Moving & Storage, registered April 23, 2020.

▪ Charles Cleaning Services, registered April 23, 2020

▪ Gayou Import & Export Corp, registered May 14, 2020.

▪ Charles Advertising & Marketing Services, registered May 21, 2020.

▪ Haitian American Equity Funding, reinstated May 21, 2020.

▪ Haitian American Real Estate Investors Club, reinstated May 21, 2020.

▪ Charles Properties, reinstated May 21, 2020

▪ Haitian American Equity Funding, reinstated on May 21, 2020

▪ Charles Delivery Services, reinstated May 23, 2020.

▪ Charles Healthcare Nurses Registry, reinstated May 23, 2020

▪ Charles Development Homes, reinstated May 23, 2020

▪ Charles Construction Services, reinstated May 23, 2020

▪ Charles Liquor Stores, registered May 26, 2020.

▪ Above & Beyond Event Designs, registered May 29, 2020.

▪ Charles Global Investments, reinstated June 16, 2020

▪ Brothers Entertainment, reinstated June 16, 2020.

▪ Scholars of Tomorrow Institute, registered Aug. 24, 2020. Carl Charles as vice president and Patrick Charles as a director, but the president is listed as Daphne Desauguste (remember that name).

▪ CEP Logistics, registered Dec. 31, 2020.

▪ Charles’ Exotic Cars, registered April 16, 2021

Most of the companies carried a principal address of either 1641 S. State Rd. 7 or 1643 S. State Rd. 7, a strip mall in North Lauderdale.

Fake businesses and real estate?

Occasionally, indictments or forfeiture applications will list what prosecutors think defendants did with the alleged loot. That’s not the case with the Charles brothers, but Broward County court and property records say Carl Charles went on an orgy of buying from July 2020 through 2022.

READ MORE: Former Miami cop milked COVID-19 relief program for $40,000

That includes the home listed as Carl Charles’ home address on an Oct. 15 traffic ticket, 18900 SW 32nd Ct. in Miramar. Some of the properties were transferred by quit claim deed to LLCs owned by Charles.

In chronological order:

▪ Charles bought 3192 La Mirage Dr. in Lauderhill for $215,000 on July 31, 2020. He transferred it via quit claim deed on Oct. 12, 2021 to 3192 LaMirage Drive, Lauderhill FL 33319 LLC. The LLC sold it for $340,000 on Jan. 3 to an individual buyer.

▪ Charles bought 3195 La Mirage Dr., in Lauderhill for $190,000 on Sept. 29, 2020. He transferred it via quit claim deed on Oct. 12, 2021 to 3195 LaMirage Drive, Lauderhill FL 33319 LLC.

▪ Charles bought 6129 Hayes St. in Hollywood for $365,000 on Oct. 26, 2020. He transferred it via quit claim deed on Oct. 12, 2021 to 6129 Hayes Street., Hollywood FL 33024 LLC.

▪ Charles bought 12708 SW 21st St. in Miramar for $520,000 on Oct. 28, 2020. He transferred it via quit claim deed on Oct. 12, 2021 to 12708 SW 21st St., Miramar FL 33027, LLC. The LLC sold it Jan. 3, 2023 to Daphnee Holdings of Daphnee Desauguste, the same DAphnee Desauguste who listed as president of Scholars of Tomorrow Institute. Daphnee Holdings principal address is 1643 S. State Rd. 7 in North Lauderdale.

▪ Charles bought 6133 Hayes St. in Hollywood for $100,000 on Oct. 29, 2020. He transferred it via quit claim deed on Sept. 21, 2021 to 6133 Hayes St. Hollywood FL LLC.

▪ Charles bought 1578 SW 191st Ave. in Pembroke Pines for $659,000 on Nov. 6, 2020. He transferred it via quit claim deed for $175,000 to himself and Dania Termorius on Nov. 10, 2021. Just 12 days later it was transferred it again via quit claim deed, this time for $100, to 1578 SW 191st Ave., Pembroke Pines FL 33029, LLC.

▪ Charles bought 5609 Monte Carlo Pl in Margate for $247,000 on Nov. 21, 2020. He transferred it via quit claim deed on Oct. 12, 2021 to 5609 Monte Carlo Place, Margate FL 33068, LLC. The LLC sold it for $310,000 on Feb. 10, 2022.

▪ Charles bought 18900 SW 32nd Ct., a five-bedroom, four-bathroom home in Miramar on Nov. 25, 2020 for $820,000. On Nov. 24, 2021, he transferred it via quit claim deed to 18900 SW 32nd Court LLC.

State records say Carl Charles bought his home 18900 SW 32nd Ct. in Miramar in November 2020. Federal proseuctors say that’s when he and his brother were in the middle of a $2.5 million COVID-19 relief fraud ripoff. Broward County Property Appraiser
State records say Carl Charles bought his home 18900 SW 32nd Ct. in Miramar in November 2020. Federal proseuctors say that’s when he and his brother were in the middle of a $2.5 million COVID-19 relief fraud ripoff. Broward County Property Appraiser

▪ Charles bought 7752 NW 78th Pl. in Tamarac for $385,000 on Nov. 25, 2020. He transferred it via quit claim deed for $50,000 on Dec. 8, 2020 to himself, Linsky Desauguste and Daphnee Desauguste. They transferred it via quit claim deed for $100 on Nov. 24, 2021 to 7752 NW 78 Place Tamarac FL 33321, LLC. Charles and the Desaugustes are the LLC’s three officers.

▪ Charles Global Investments bought 3071 La Mirage Dr. in Lauderhill for $280,000 on March 10, 2021 and sold it on Dec. 9, 2022 for $387,000.

▪ Charles Global Investments bought 3269 Inverrary Blvd., in Lauderhill for $275,000 on May 17, 2021 and sold it April 26, 2022 for $366,000.

▪ Charles Global Investments bought 3220 NW 32nd Ter. in Oakland Park for $250,000 on June 29, 2021 and sold it for $360,000 on April 28, 2022.

▪ Carl Charles LLC bought 3070 La Mirage Dr. in Lauderhill for $245,000 on Aug. 20, 2021.

▪ On Feb. 4, 2022, 3441 NW 40th St. in Lauderdale Lakes was bought for $325,000 by Carl Charles and wife Nadege Charles through their company, 3441 NW 40 St., Lauderdale Lakes FL 33309, LLC.