According to the indictment, Schuster ran the scheme between 2018 and 2022 through his Manhattan-based company, Silverback Development. He lured investors by promoting elite opportunities in New York City real estate, promising that their funds would be used exclusively to acquire and develop high-end projects in areas such as Gramercy Park, Long Island City, and the Bronx. Schuster represented Silverback as a premier investment platform supported by his market expertise.
However, authorities allege that behind the scenes, Schuster misused investor money to bankroll personal expenses, including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses. He also allegedly used new investor funds to pay back earlier investors in a Ponzi-like scheme, cover unrelated business obligations, and maintain payroll.
“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,” said FBI assistant director in charge Christopher Raia. “This alleged scheme betrayed prospective buyers’ trust and pockets to finance his lifestyle and cover personal delinquent debts.”
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Schuster faces one count of wire fraud and one count of securities fraud, each carrying a maximum sentence of 20 years in prison. While the maximum penalties are determined by statute, the ultimate sentence will be set by the presiding judge.