Three New Jersey residents have been indicted for their alleged involvement in a multi-million-dollar mortgage fraud scheme, with two also facing charges for fraudulently obtaining approximately $3 million in federal Economic Injury Disaster Loans (EIDLs).
Arthur Spitzer, 37, of Toms River, New Jersey, faces eight counts of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, two counts of aggravated identity theft, one count of making a false statement to a financial institution, and 12 counts of money laundering. Mendel Deutsch, 38, also of Toms River, is charged with three counts of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, one count of aggravated identity theft, one count of making a false statement to a financial institution, and two counts of money laundering. Joshua Feldberger, 42, of Howell, New Jersey, is charged with one count each of wire fraud, bank fraud, bank and wire fraud conspiracy, aggravated identity theft, and making a false statement to a financial institution. The defendants were arraigned before U.S. District Judge Edward S. Kiel in Camden federal court.
The alleged scheme leveraged the defendants' professional backgrounds, particularly Spitzer's role as a title agent, which gave him detailed knowledge of the title process and how to exploit it. Between 2019 and 2020, Spitzer, who was familiar with title transactions from his job, allegedly orchestrated a scheme to defraud property owners and mortgage lenders by falsely transferring property titles into his name. This fraudulent transfer was critical, allowing Spitzer to secure substantial mortgage loans under false pretenses. Without this manipulation of title documents, the fraudulent loans and subsequent defaults would not have been possible.
Spitzer allegedly identified properties in New Jersey and Brooklyn, New York, with minimal or no mortgage debt. He used his expertise to forge documents, making it appear as though he owned these properties, thereby deceiving lenders into issuing large loans. Once the funds were received, Spitzer allegedly defaulted on the loans, leaving the real property owners vulnerable to foreclosure and eviction.
In June 2020, Spitzer allegedly conspired with Deutsch and Feldberger to further his fraudulent activities. They created fake documents and misrepresented transactions to secure a $4 million mortgage loan, with Feldberger facilitating the fraudulent transaction through his settlement company.
The defendants face severe charges with significant penalties. The charges of bank fraud conspiracy, bank fraud, and making false statements to a financial institution each carry a maximum penalty of 30 years in prison and a $1 million fine. Wire fraud conspiracy and wire fraud each carry up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Money laundering charges carry up to 10 years in prison and a $250,000 fine. Aggravated identity theft charges result in a mandatory two-year prison sentence.
Link: https://www.hometitlelock.com/articles/uncovering-the-multi-million-dollar-scam-that-left-new-jersey-homeowners-facing-foreclosure
