Former New York City Real Estate Developer Charged With Defrauding Investors

Press Release Former New York City Real Estate Developer Charged With Defrauding Investors Wednesday, May 7, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Joshua Schuster Stole Millions of Dollars From Investors in Real Estate Development Projects Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JOSHUA SCHUSTER with engaging in a scheme to defraud investors in large real estate development projects located in New York City. SCHUSTER was arrested today and will be presented in the U.S. District Court for the Southern District of Florida. The case has been assigned to U.S. District Judge Valerie E. Caproni. U.S. Attorney Jay Clayton said: “As alleged, Joshua Schuster stole more than $10 million from his investors to fund his own lifestyle, pay off other investors in a Ponzi fashion, and maintain the appearance of success. The women and men of our Office are committed to protecting investors and our markets from fraud and abuse.”FBI Assistant Director in Charge Christopher G. Raia said: “Joshua Schuster allegedly stole more than ten million dollars from New York City real estate investors through inaccurate statements of fund usage and exaggerated portrayals of his business’s reputation. This alleged scheme betrayed prospective buyers’ trust and pockets to finance his lifestyle and cover personal delinquent debts. The FBI will never permit any individual to unlawfully profit off false promises—even when those promises result in actual buildings on the city’s skyline.”According to the allegations contained in the Indictment1:From at least in or about 2018, up through and including at least in or about 2022, SCHUSTER engaged in a scheme to defraud investors who had entrusted him with millions of dollars to finance real estate development projects in New York City. SCHUSTER worked through his real estate development business, Silverback Development, which was based in Manhattan. SCHUSTER induced investors to contribute capital to his projects by promising them equity in high-end real estate developments, and by representing that investor funds would be used exclusively for the acquisition and development of specific projects in Gramercy Park, Long Island City, the Bronx, and other locations. SCHUSTER marketed Silverback and its affiliated real estate ventures as elite investment opportunities backed by his market expertise.In reality, the representations and promises SCHUSTER made to investors were false and misleading. SCHUSTER misappropriated tens of millions of dollars in investor money to fund his lifestyle, including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses; to repay earlier investors in a Ponzi-like fashion; and to cover unrelated business obligations and payroll. In total, SCHUSTER fraudulently obtained and stole in excess of $10 million.* * *SCHUSTER, 41, of Boca Raton, Florida, is 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.The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution. u.s._v._schuster_indictment.pdf 1 As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated May 7, 2025 Topic Securities, Commodities, & Investment Fraud Component USAO - New York, Southern Press Release Number: 25-105

Press Release Former New York City Real Estate Developer Charged With Defrauding Investors Wednesday, May 7, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Joshua Schuster Stole Millions of Dollars From Investors in Real Estate Development Projects Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JOSHUA SCHUSTER with engaging in a scheme to defraud investors in large real estate development projects located in New York City. SCHUSTER was arrested today and will be presented in the U.S. District Court for the Southern District of Florida. The case has been assigned to U.S. District Judge Valerie E. Caproni. U.S. Attorney Jay Clayton said: “As alleged, Joshua Schuster stole more than $10 million from his investors to fund his own lifestyle, pay off other investors in a Ponzi fashion, and maintain the appearance of success. The women and men of our Office are committed to protecting investors and our markets from fraud and abuse.”FBI Assistant Director in Charge Christopher G. Raia said: “Joshua Schuster allegedly stole more than ten million dollars from New York City real estate investors through inaccurate statements of fund usage and exaggerated portrayals of his business’s reputation. This alleged scheme betrayed prospective buyers’ trust and pockets to finance his lifestyle and cover personal delinquent debts. The FBI will never permit any individual to unlawfully profit off false promises—even when those promises result in actual buildings on the city’s skyline.”According to the allegations contained in the Indictment1:From at least in or about 2018, up through and including at least in or about 2022, SCHUSTER engaged in a scheme to defraud investors who had entrusted him with millions of dollars to finance real estate development projects in New York City. SCHUSTER worked through his real estate development business, Silverback Development, which was based in Manhattan. SCHUSTER induced investors to contribute capital to his projects by promising them equity in high-end real estate developments, and by representing that investor funds would be used exclusively for the acquisition and development of specific projects in Gramercy Park, Long Island City, the Bronx, and other locations. SCHUSTER marketed Silverback and its affiliated real estate ventures as elite investment opportunities backed by his market expertise.In reality, the representations and promises SCHUSTER made to investors were false and misleading. SCHUSTER misappropriated tens of millions of dollars in investor money to fund his lifestyle, including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses; to repay earlier investors in a Ponzi-like fashion; and to cover unrelated business obligations and payroll. In total, SCHUSTER fraudulently obtained and stole in excess of $10 million.* * *SCHUSTER, 41, of Boca Raton, Florida, is 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.The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution. u.s._v._schuster_indictment.pdf 1 As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated May 7, 2025 Topic Securities, Commodities, & Investment Fraud Component USAO - New York, Southern Press Release Number: 25-105