Sentenced in Palm Beach hotel fraud case, Robert V. Matthews gets delay to enter prison

After he cited upcoming medical appointments, former Palm Beach hotel developer Robert “Bob” V. Matthews has been granted a delay to report to federal prison by the same Connecticut judge who in July sentenced him to more than five years in prison for fraud, money laundering and tax-evasion.

Much of the criminal case centered on Matthews’ role as the defacto former owner of the never-completed Palm House hotel renovation project at 160 Royal Palm Way in Palm Beach. The case involved the illegal transfer of funds between bank accounts in Florida and Connecticut, where he had residences.

Matthews, who remains free on bond and lives in Palm Beach Gardens, had been scheduled to surrender Oct. 23 to authorities for incarceration in a still-unidentified prison to begin serving his sentence of 65 months. He had pleaded guilty in the long-simmering case in 2019.

But in a ruling this month, Connecticut Judge Victor Bolden granted Matthews’ request to postpone “his date of self-surrender” to Nov. 27.

Matthews had filed a request asking for the delay, which was granted in an order filed Oct. 3. The latter document cited a medical evaluation Matthews had scheduled for Oct. 21, which would last three to five days, and a follow-up appointment on Nov. 22. Matthews’ attorney wrote in the request that Matthews had been unable to schedule earlier appointments although he had asked his doctors for “the speediest evaluation possible.”

The nature of Matthews’ medical condition was not specified in the judge’s order.

Matthews was sentenced in Bolden’s Bridgeport courtroom July 31 on one felony count each of conspiracy, illegal monetary transactions and tax evasion. His prison term will be followed by three years of supervised release, the judge ruled. Matthews must serve at least 85 percent of his sentence under federal sentencing rules.

Any restitution to be paid by Matthews has not yet been ordered by the court.

MATTHEWS SENTENCED IN JULY: Former Palm Beach developer Robert V. Matthews gets 65-month prison sentence in hotel case

Prosecutors said Matthews spearheaded a fraud and money-laundering scheme that bilked more than $30 million out of about 61 foreign investors who put in $500,000 each. They were told their money would go to the renovation of the luxury Palm House hotel property, but Matthews instead spent it on himself.

Matthews’ then-wife, Maria “Mia” Sneden Matthews, was charged with one count of tax evasion in the case. She pleaded guilty to that charge in April 2019 but has not been scheduled for sentencing. The couple divorced in June after 26 years of marriage.

Nicholas Laudano, a former construction executive at the Palm House, was sentenced in June to supervised release and time served after he pleaded guilty in 2018 to two felony counts — conspiracy to commit bank fraud and taking part in an illegal monetary transaction.

Connecticut commercial real estate broker Gerry Matthews — Robert Matthews’ brother — is scheduled to be sentenced Nov. 14, having pleaded guilty in a related case in 2018 to one felony count of conspiring to commit wire fraud.

MATTHEWS ENTERS GUILTY PLEA: Former Palm Beach hotel developer Rober V. Matthews pleads guilty in fraud and money-laundering case

Another man, Palm Beach attorney Leslie R. Evans, pleaded not guilty after being charged in the case in 2018 on multiple counts. Last April, the judge dismissed all of the charges against Evans and cleared his criminal record in the Palm House case after he completed a so-called “pre-trial diversion” program.

Robert Matthews was arrested at his Palm Beach oceanfront mansion —– since sold — in March 2018 on charges brought by U.S. Attorney for the District of Connecticut. He initially pleaded not guilty to 21 felony counts. His criminal schemes stretched between 2007 and 2018, court documents showed.

In 2019, the unfinished Palm House project sold for $39.6 million in a sale authorized by a federal bankruptcy court. The new owner — an affiliate of the international hospitality and real estate firm London & Regional Properties — is renovating the 79-room building and grounds.

Before it sold, the Palm House was mired for years in legal troubles, including lawsuits, foreclosure proceedings, investigations by the Securities Exchange Commission, town code violations and bankruptcy.

Prosecutors did not object to Robert Matthews’ request for the postponement to surrender for prison, the judge’s order shows.

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Darrell Hofheinz is a USA TODAY Network of Florida journalist who writes about Palm Beach real estate in his weekly “Beyond the Hedges” column. He welcomes tips about real estate news on the island. Email dhofheinz@pbdailynews.com, call 561-820-3831 or tweet @PBDN_Hofheinz. Help support our journalism. Subscribe today.

This article originally appeared on Palm Beach Daily News: Palm Beach man sentenced for fraud sees delay in reporting to prison