BOCA RATON, FL — Joshua Schuster, 41, of Boca Raton, Florida, has been arrested and charged with wire fraud and securities fraud in connection with defrauding investors out of more than $10 million through a high-profile real estate investment scheme, federal authorities announced.
Schuster, the former owner of Silverback Development, a Manhattan-based real estate firm, allegedly ran the fraudulent scheme between 2018 and 2022, targeting investors with promises of elite real estate opportunities in Manhattan and surrounding areas, such as Gramercy Park, Long Island City, and the Bronx. The indictment claims Schuster misrepresented these opportunities, telling investors their funds would go toward developing premium projects.
However, authorities allege that Schuster misused these investor funds to support his personal lifestyle, including paying off over $1 million in personal credit card bills and covering hundreds of thousands of dollars in gambling losses. Schuster also allegedly used funds from new investors to pay off earlier investors, creating a Ponzi-like scheme.
U.S. Attorney Jay Clayton emphasized the nature of the crime: “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.”
FBI Assistant Director in charge Christopher Raia added, “This alleged scheme betrayed prospective buyers’ trust and pockets to finance his lifestyle and cover personal delinquent debts.”
Schuster faces one count of wire fraud and one count of securities fraud, each carrying a maximum sentence of 20 years in prison. The final sentence will be determined by the presiding judge.
