By: Richard L. Smith
Three New Jersey men have been indicted in connection with a multimillion-dollar mortgage fraud scheme and two are also facing charges for fraudulently obtaining $3 million in federal Economic Injury Disaster Loans (EIDL) during the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced.
Federal officials said Arthur Spitzer, 37, and Mendel Deutsch, 38, both of Toms River, along with Joshua Feldberger, 42, of Howell, face a range of charges including wire fraud, bank fraud, aggravated identity theft, and money laundering.
They were arraigned before U.S. District Judge Edward S. Kiel in Camden federal court.
The indictment alleges that between 2019 and 2020, Spitzer led a scheme to defraud mortgage lenders by securing loans on properties he did not own.
Using fraudulent documents with forged signatures, Spitzer falsely claimed ownership of properties in New Jersey and Brooklyn, New York, securing loans that were later defaulted on, leaving the real property owners at risk of foreclosure.
In June 2020, Spitzer, Deutsch, and Feldberger conspired in a fraudulent $4 million mortgage deal involving three Brooklyn properties.
The trio falsified documents and financial statements to deceive a mortgage lender, who unwittingly funded the fraudulent transaction.
Additionally, Spitzer and Deutsch are accused of fraudulently obtaining EIDL loans, intended to aid businesses impacted by the COVID-19 pandemic.
By submitting false information about company operations, the pair obtained millions in loans for businesses with little or no actual activity.
The charges carry severe penalties, with counts of bank fraud and related conspiracy charges punishable by up to 30 years in prison.
Wire fraud and money laundering charges carry sentences of up to 20 and 10 years respectively, with significant financial penalties also possible.