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$10M missing from development project
Firm says investors' money can't be accounted for
Updated: Monday, 04 Feb 2013, 11:46 AM EST
Published : Monday, 04 Feb 2013, 11:46 AM EST
PROVIDENCE, R.I. (AP) - A firm hired to assess an abandoned Providence waterfront development project says $10 million of investors' money can't be accounted for.
The Providence Journal reports that Baltimore-based Struever Bros. received $36 million in private investments for the so-called Dynamo House development. But a 2009 report by the Peregrine Group of East Providence says only $26 million in cash disbursements could be documented.
A lawyer for five unpaid contractors has raised the possibility of fraud in court documents.
The president of Struever Bros., C. William Struever, didn't respond to messages from the Journal.
A representative for another Baltimore company that has taken over the proposed redevelopment is questioning whether the $10 million is actually missing and says Peregrine Group's report wasn't intended to be an audit of the project.
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