Daily News Staff Writer Developer Robert Matthews and others involved in the beleaguered Palm House project now face two lawsuits alleging misuse of $16 million loaned to rebuild the hotel-condominium.
Minority owner Ryan Black filed the second suit late last month. It repeats many of the claims made in a suit filed the same day by a company that loaned the project millions of dollars.
Black’s suit alleges that the money — loaned for the project’s construction through a federal program — was mishandled. The program, known as the EB-5 Immigrant Investor Program, channels money from foreign investors into construction projects on U.S. soil.
The disputed funds were used to pay Matthews’ personal expenses, including his personal real estate taxes, as well as to improperly buy a $5.75 million 151-foot yacht named Alibi, according to the suit.
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