P.M. BRIEFING : Fla. Builder Offers Restitution
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MIAMI — Florida developer General Development Corp. will plead guilty to a criminal charge of fraud conspiracy and pay as much as $160 million in restitution to more than 10,000 home buyers, a spokeswoman said today.
The deal must be approved by a U.S. bankruptcy judge and a U.S. district judge. The spokeswoman said the first hearing on the plan was expected late this month.
The development company filed for Chapter 11 bankruptcy protection in U.S. bankruptcy court in Miami in early April, two weeks after a federal grand jury accused it of defrauding buyers of homes in its nine Florida communities.
A judge rejected an earlier plea bargain, but the new plan offers a higher, $160-million cap and a quicker payout, often within five years after bankruptcy proceedings end.
The Miami Herald quoted a General Development bankruptcy attorney as saying the company believes that 10,230 home buyers would qualify for restitution.
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