Joshua Schuster, a former New York City real estate developer, was sentenced to four years in prison for his role in a scheme to defraud investors in large real estate development projects.
According to the charges brought against him, 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.
Schuster pled guilty last February. In addition to the prison term, he was sentenced to three years of supervised release and will be required to pay more than $13.8 million in forfeiture. Schuster will also be required to pay restitution, which will be determined at a later date.
“To preserve the integrity of and confidence in our financial markets, this Office will work tirelessly to prosecute fraud and protect investors in these markets,” said US Attorney Jamie McDonald. “Joshua Schuster betrayed the trust of investors who believed their money would fund real estate projects throughout New York. Instead, he stole more than $13 million to finance his own lifestyle and repay earlier investors in a Ponzi-like scheme. As a result of his lies and deception at his investors’ expense, Schuster has been sentenced to a term in federal prison.”
0 Comments