In a significant federal case, New Jersey residents Arthur Spitzer, Mendel Deutsch, and Joshua Feldberger have been indicted for their alleged roles in a multimillion-dollar mortgage fraud scheme and, in two cases, for fraudulently obtaining nearly $3 million in COVID-19 relief funds. The U.S. Attorney Philip R. Sellinger announced the charges, which encompass multiple counts of wire fraud, bank fraud, conspiracy, aggravated identity theft, and money laundering.
Arthur Spitzer, Mendel Deutsch, and Joshua Feldberger: The Defendants and Charges
Arthur Spitzer, 37, of Toms River, New Jersey, faces charges including eight counts of wire fraud, one count of bank fraud, one count of conspiracy to commit bank and wire fraud, two counts of aggravated identity theft, one count of making false statements to a financial institution, and 12 counts of money laundering.
Mendel Deutsch, 38, also of Toms River, faces three counts of wire fraud, one count of bank fraud, one count of conspiracy to commit bank and wire fraud, one count of aggravated identity theft, one count of making false statements to a financial institution, and two counts of money laundering.
Joshua Feldberger 42, from Howell, New Jersey, faces charges including one count of wire fraud, one count of bank fraud, one count of conspiracy to commit bank and wire fraud, one count of aggravated identity theft, and one count of making false statements to a financial institution. The defendants were arraigned in Camden federal court before U.S. District Judge Edward S. Kiel.
The Mortgage Fraud Scheme
The indictment details how Arthur Spitzer allegedly orchestrated a sophisticated mortgage fraud scheme between 2019 and 2020. Spitzer targeted properties in New Jersey and Brooklyn, New York, with no existing mortgages or significantly lower mortgage balances than the properties’ market values. He is accused of using fraudulent documents, including forged signatures of the actual property owners, to obtain mortgage loans under false pretenses. The funds from these loans were deposited into bank accounts controlled by Spitzer or used to pay off his personal debts.
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Mendel Deutsch and Joshua Feldberger were allegedly involved in a related fraudulent scheme in June 2020. The three men worked together to create the appearance that Spitzer owned three properties in Brooklyn. Mendel Deutsch obtained a $4 million mortgage loan to purchase these properties, while Joshua Feldberger facilitated the transaction through his settlement company. They allegedly used false documentation and forged letters to mislead the lender, concealed a short-term loan taken shortly before closing, and falsely claimed that substantial funds had been deposited into escrow.
COVID-19 Relief Fraud
In addition to the mortgage fraud, Arthur Spitzer and Mendel Deutsch are accused of fraudulently obtaining millions of dollars through the Economic Injury Disaster Loans (EIDL) program, which was intended to provide financial relief to businesses affected by the COVID-19 pandemic. By submitting false information about the businesses’ operations, including inflated numbers of employees, revenues, and expenses, they were able to secure loans meant for small businesses in genuine need.
Potential Penalties for Arthur Spitzer, Mendel Deutsch, and Joshua Feldberger
The charges against Arthur Spitzer, Mendel Deutsch, and Joshua Feldberger carry significant potential penalties. Each charge of bank fraud and making false statements to a financial institution carries a potential penalty of up to 30 years in prison and a $1,000,000 fine. The wire fraud and conspiracy charges are each punishable by up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. Money laundering charges are punishable by up to 10 years in prison and a $250,000 fine, while aggravated identity theft charges carry a mandatory prison sentence of two years.
Investigation and Legal Proceedings
The investigation that led to these indictments was conducted by special agents from the FBI, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation’s Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
While the charges against Arthur Spitzer, Mendel Deutsch, and Joshua Feldberger are serious, they are currently only allegations. The defendants are considered innocent unless proven guilty in a court of law. This case highlights the importance of vigilance in safeguarding public funds and maintaining the integrity of financial institutions, especially during challenging times like the COVID-19 pandemic.
