Joshua Schuster, a former New York City real estate developer, has been indicted for conducting a four-year, multimillion-dollar real estate investment scam.
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.
Almost all fraud (no conviction, so it’s only an law enforcement charge) have one thing in common, it seems. Investors convinced by a pied piper who lives the high life, with extravagant toys and trendy girls. They know it can’t last, but they don’t seem to care. I get the same feeling when I go see my favorite team play a game. The costs are too much, I drink and eat too much. I have a great time, and I really don’t care the expense. When it’s over, I am out a few hundred bucks – – – – – – – – – – Only!