Joshua Schuster, a former New York City real estate developer who was indicted last May for conducting a four-year, multimillion-dollar real estate investment scam, is reportedly planning to enter a guilty plea in his case.
Hoodline.com reports Schuster is scheduled to appear in a change-of-plea hearing on Friday, which would reverse his earlier insistence that he was not guilty. If the guilty plea is entered, the court would then schedule dates for a presentence report and sentencing.
Schuster’s expected guilty plea would not affect the civil lawsuit brought against him by the Securities and Exchange Commission, which is still active in the Southern District of New York.
According to the charges, between 2018 and 2022 Schuster and his real estate development business Silverback Development induced investors to contribute capital to his projects by promising them equity in high-end real estate developments across New York City. In reality, Schuster’s representations to investors were false and misleading.
Schuster absorbed his investors’ funds to finance his lifestyle, including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses. He used a Ponzi-style scheme to repay earlier investors and cover unrelated business obligations and payroll.
By the end of his run, Schuster fraudulently obtained and stole more than $10 million. He has been charged with one count of wire fraud and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison.
Photo: Joshua Schuster, courtesy of Silverback Development
