Michael Runyan, president of BJ&K Construction Services in Fort Lauderdale, Fla., has plead guilty to one conspiracy charge and to paying millions of dollars in kickbacks to senior executives of Carlisle Development Group as part of a $36 million affordable housing scam. Runyan faces up to five years in prison and must repay nearly $1.15 million that he pocketed from the scam.
Rene Sierra, president of Siltek also pled guilty in July to conspiring with developers in four projects. A third contractor, Arturo Hevia plead guilty to conspiracy in July related to two projects with the accused developers.
In addition, the co-founders of the Biscayne Housing Group have entered plea deals for their roles in conspiring with two principals of the Carlisle Development Group. Both Biscayne Housing Group founders face time in prison as well as having to repay $4.4 million each.
Former chief executive officier of Carlisle Matthew Greer and company co-founder Lloyd Boggio also plan to enter guilty pleas for conspiracy charges. The two executives are accused of accepting more than $26 million in unlawful funds from Runyan.
All involved in the case are accused of conspiring to steal $36 million in federal housing subsidies by inflating construction costs and receiving kickbacks for 14 government-subsidized projects built mostly in Miami-Dade County between 2007 and 2012.
(more on the Florida affordable housing scam...)
