RIVIERA BEACH, Fla. — The former chairman of the Riviera Beach Housing Authority, has been sentenced to 15 months in federal prison after pleading guilty in December 2022 to one count of extortion after investigators said he used his position in the vity to receive kickback payments from a real estate transaction.
Delvin Thomas, 44, of West Palm Beach also must forfeit $9,400 as part of the sentencing Wednesday in Miami by U.S. District Judge Kenneth A. Mara in a release by the U.S. Department of Justice on Friday.
He was arrested last October.
Thomas had served as a member of the housing authority, starting in 2009.
In April 2019, the authority was looking to purchase a parcel of real estate in Riviera Beach for future use as low-income rental property. Thomas introduced a real estate broker to the person at the Riviera Beach Housing Authority responsible for purchasing the property, according to prosecutors. The broker would serve as the buyer’s agent for the real estate transaction.
The authority contracted to purchase the property, with the buyer’s agent set to receive a 3% commission on the price. After the contract was finalized, Thomas informed the buyer’s agent that he was to receive 50% of the commission.
At the real estate closing, the buyer’s agent’s company was paid a commission of $18,930, and Thomas reminded the agent about his 50% cut of $9,400. To hide the unlawful payment, Thomas contacted a third party who agreed to help.
That third party deposited one check for $6,400 and other for $3,000 into that person's business bank account Checks falsely stated in their memo sections that the payments were for “Company Branding” and “Marketing Services,” according to prosecutors. The third party issued two checks from that account to the account of Sire Development Group, LLC -- a company owned by Thomas. Those checks falsely stated in their memo sections that the payments were for “Consulting Services.”
FBI Miami investigated the case.
He had faced maximum prison sentence of 20 years and a fine of $250,000 on the charge of one count of extortion under color of official right.
