“Jeb Bush was on the board, there were a lot of successful people convincing me. We went out and we met and I just began to realize that the cost-effectiveness of building with the materials would never work,’’ Korge said. By that time, however, it was too late.

Creditors were already knocking on Osorio’s door, including the Swiss government, which claimed he owed $220 million in loans from Swiss banks that he obtained by lying about the soundness of his previous business venture, Miami-based CHS Electronics. That company went bankrupt in 2000.

Korge’s attorney, Kendall Coffey, said Osorio had a knack for exploiting South Floridians’ quest for wealth and success.

“Miami is a city of newcomers and opportunity. And the combination creates a perfect landscape for fraud,’’ said Coffey, a former Miami U.S. attorney.

“Osorio had the opportunity to arrive in town and make high connections that wrapped him with respect and effectively positioned him to entice some very bright people.’’

Osorio and Toll, the CFO, are also charged with defrauding Korge and other investors out of $40 million, and scamming the federal government out of the $10 million they were given to help finance construction of a Haitian factory to build homes for hurricane victims.

Toll, 64, is a graduate of the University of Pennsylvania’s Wharton School of Business. A certified public accountant, Toll formerly was an auditor for Deloitte & Touche, rising to audit partner and director of a 50 person audit department. He lives in Pembroke Pines.

The Miami Herald was unsuccessful in reaching Orlando do Campo, Osorio’s attorney. Toll’s lawyer, Richard Klugh, said his client did nothing wrong.

"Craig Toll was an honorable employee of the company who should not have been charged with anything," Klugh said. "I hope I can help him get through this prosecution without any further harm. And I hope that members of the Board of Directors will come to his defense."

Korge’s civil lawsuit and those of others forced Osorio into bankruptcy last year and his $12 million Star Island mansion was auctioned off. As part of his Chapter 11 filing, the embattled entrepreneur promised to repay creditors and investors $50 million. The company, however, was shut down last year, and its formula for building the resin-structured housing was sold to a Brazilian firm.

Korge, who spent another $500,000 to sue Osorio, said he felt some vindication now that Osorio has been arrested.

“Even though at the end of the day I may not see a penny back, at least I have a clear conscience that I stopped someone from hurting other people’s lives,’’ he said.

Miami Herald staff writer Jay Weaver contributed to this story.