Three New Jersey residents were indicted for their role in a multimillion-dollar mortgage fraud scheme and two of the three were indicted for fraudulently obtaining approximately $3 million of federal Economic Injury Disaster Loans.
NEWARK, N.J. – Three individuals from New Jersey have been indicted for their involvement in a multimillion-dollar mortgage fraud scheme, with two also facing charges related to COVID-19 relief fraud, U.S. Attorney Philip R. Sellinger announced September 3, 2024.
Arthur Spitzer, 37, and Mendel Deutsch, 38, both of Toms River, along with Joshua Feldberger, 42, of Howell, were charged in connection with fraudulent mortgage activities involving properties in New Jersey and Brooklyn. Spitzer and Deutsch are also accused of fraudulently obtaining approximately $3 million in federal Economic Injury Disaster Loans (EIDL) intended to support businesses affected by the COVID-19 pandemic.
According to the indictment, Spitzer orchestrated the mortgage fraud scheme between 2019 and 2020, obtaining loans on properties he did not own by using falsified documents. He worked with Deutsch and Feldberger to secure a $4 million mortgage on properties in Brooklyn through deceptive means. The trio created fake documents, misrepresented financial details, and facilitated the fraudulent sale, ultimately leading the mortgage lender to approve the loan.