Bal Harbour-based mostly developer Eric Sheppard is headed to the slammer, after a jury convicted him of defrauding Covid-19 catastrophe reduction programs. He allegedly stole practically $900,000 in federal funds amongst March 2020 and Might 2021, according to his indictment.
Previous 7 days, jurors in Miami federal courtroom identified the 55-year-aged builder guilty of four counts of wire fraud and two counts of aggravated identification theft, court docket records present. But Sheppard was acquitted on five counts of wire fraud and a few counts of aggravated identity theft. His sentencing is established for April, and Sheppard faces up to 82 yrs in jail.
Sheppard is not the only South Florida actual estate skilled headed to jail for allegedly ripping off Covid-19 catastrophe aid applications. In August, Miami actual estate agent Daniela Rendon was sentenced to 3 yrs and 5 months in federal lock-up, soon after pleading responsible to defrauding the Compact Enterprise Administration and Paycheck Defense Software, recognised as PPP, out of $381,290.
Rendon allegedly employed the illegally acquired proceeds to lease her white Bentley Bentayga, lease a luxurious condominium, refinish her designer footwear and have cosmetic techniques.
During Sheppard’s demo, assistant U.S. lawyers for the Southern District of Florida offered proof allegedly exhibiting he devised a scheme to fraudulently attain PPP financial loans and Financial Injury Catastrophe Financial loan cash.
Sheppard allegedly submitted fraudulent mortgage purposes supported by fabricated files, such as doctored tax returns with the cast signature of his accountant, courtroom data show.
At the time of his arrest last yr, Sheppard headed WSG Advancement, a organization that was concerned in the acquisition, enhancement and development of industrial and residential projects in 13 states, his LinkedIn profile mentioned.
6 entities affiliated with WSG allegedly been given the $900,000 in unwell-gotten loans by means of intermediaries, court docket records exhibit.
Sheppard’s most sizeable undertaking happened shortly just before the 2008 genuine estate crash and world wide economical crisis. Back then, WSG was redeveloping the historic Carillon Hotel at 6901 Collins Avenue in Miami Beach front into Canyon Ranch Resort & Spa Miami Seashore.
But the project stalled when Sheppard grew to become ensnared in another South Florida scandal. In 2012, WSG and Sheppard settled a federal lawsuit that alleged his advancement company diverted approximately $40 million to a organization managed by Nevin Shapiro, a then-University of Miami booster who pleaded responsible in 2010 of engineering a $930 million Ponzi scheme.
The lawsuit alleged that Sheppard, who was a childhood buddy of Shapiro, furnished loans with no official documentation to the accused Ponzi schemer’s enterprise. Shapiro allegedly compensated again the eight-figure sum straight to Sheppard, which resulted in Sheppard getting hundreds of thousands of pounds in charges at criminally usurious fascination rates, the lawsuit alleged.
Inspite of protecting that he was also a Shapiro sufferer, Sheppard agreed to fork out back $700,000.
Sheppard’s advancement vocation cratered in the aftermath of the 2008 crash. In 2009, Lehman Bros. Holdings, an affiliate of the bankrupt Lehman Brothers, took possession of most of Canyon Ranch’s models by a $301.2 million deed in lieu of foreclosure. A yr later on, the exact same Lehman entity foreclosed on a West Palm seaside resort assets and growth web page that were owned by WSG. Sheppard had allegedly defaulted on extra than $200 million in loans.
In 2015, Z Funds purchased the Canyon Ranch residence for $21.6 million out of bankruptcy court, rebranding the job the Carillon Resort & Spa. It is now named the Carillon Miami Wellness resort.
