CBS12 News Team

Riviera Beach Councilman Cedric Thomas misuses taxpayer subsidized loan

RIVIERA BEACH, Fla. -- CBS 12 catches a Riviera Beach councilman taking advantage of taxpayers. He bought a home using a taxpayer funded mortgage. He was supposed to be living in that home and paying that mortgage. But he wasn't doing either, and he was still making money on the home collecting rent checks.
A house on west Ninth Street is in many ways like a lot of homes in our area, worth significantly less then when Riviera Beach councilman Cedrick Thomas bought it in 2005 for more than $180,000.
The 2-bedroom, 2-bath ranch is now appraised at only $40,000. When Thomas bought the home using three taxpayer funded loans, part of the deal was that he had to live in the home for the life of the mortgage. But he's not living there, and hasn't been for years.
Roderick Mitchell lives across the street from the home.
CBS 12: Have you seen Cedrick Thomas there ever?
MITCHELL: Yeah, I mean lately now he just comes by occasionally, I guess to get rent from his tenants.
In 2010, just five years into a 30 year mortgage, Thomas packed up and moved out, taking up residence at the gated Turtle Cay complex where he's been ever since.
CBS 12: Did he ever live in the house?
MITCHELL: Yeah about two and a half years ago and he's relocated and has other tenants in there now.
When we first contacted Thomas he refused to speak to us, accusing CBS 12 of trying to "stir up something negative."
CBS 12: Mr. Thomas we're not going to go away.
CBS 12 Managing Editor Tony Theissen and photographer Steve Schelb finally tracked down Thomas Wednesday night. At first he refused to stop to answer our questions. When he finally did stop he still maintained he's just been renting out the house since March first.
CBS 12: I spoke to the woman who lives next door to the house, she tells me she's been living there two years paying you $1,500 a month rent.
THOMAS: That's not true.
That doesn't match with what the former tenants at Thomas' house tell us. They tell CBS 12 they started renting the home in September of 2010 for $1,500 a month.
CBS 12: I have a neighbor across the street we talked to on camera who says you only came by for the past two years to pick up rent checks. That's the only time he's seen you.
THOMAS: Okay. That's just what they said.
CBS 12: You're telling me that's not accurate. You have not been renting out that house for two years.
THOMAS: I have rented out that house and that's what I'm telling you.
At the same time Thomas was collecting those hefty rent checks from his tenants, the county tells us he also stopped making payments on that taxpayer funded mortgage. Falling behind to the tune of nearly $10,000.
CBS 12: I think the taxpayers would probably ask if you're collecting rent on this property, why are you not paying the mortgage.
THOMAS: The mortgage is current. That's all I can tell you, the mortgage is current. And if you have a check, you should know the mortgage is current.
CBS 12: The mortgage is current as of two days ago when they informed you we were asking questions.
THOMAS: The mortgage is current, the mortgage is current.
After CBS 12 started asking county administrators about his failure to pay his mortgage, he showed up with a check making him current. He also promised the county he'd move out of his Turtle Cay house and back into the home.

Tuesday, May 1 2012, 02:34 PM EDT

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