By: Richard L. Smith
A Toms River man has admitted his role in schemes involving millions of dollars in fraudulent mortgage transactions and federal COVID-19 relief loans.
According to information released by the U.S. Attorney’s Office, Arthur Spitzer, 39, pleaded guilty August 19 before U.S. District Judge Edward S. Kiel to bank and wire fraud conspiracy and money laundering.
Federal prosecutors said Spitzer conspired with Mendel Deutsch, 39, and Joshua Feldberger, 44, in 2020 to carry out a fraudulent transaction involving three Brooklyn properties and a $4.5 million mortgage loan.
Authorities said the defendants used false documents and statements to make it appear that required funds had been deposited toward the property transaction when they had not.
Prosecutors said proceeds from the mortgage were ultimately used to cover money that was supposed to have already been provided by the buyer.
Spitzer also accepted responsibility for losses connected to five additional fraudulent loan schemes in 2019 and 2020 totaling more than $10 million, according to federal officials.
Prosecutors said Spitzer separately obtained approximately $1.8 million in Economic Injury Disaster Loans intended to help businesses struggling during the COVID-19 pandemic.
Applications allegedly contained false information about businesses, including their employees, revenues and expenses. Spitzer also admitted laundering some of those proceeds.
As part of his plea, Spitzer agreed to pay restitution, including $1 million to the owner of the Brooklyn properties and at least $1.845 million to the U.S. Small Business Administration, subject to applicable credits. He also agreed to forfeit $2.35 million.
The fraud conspiracy charge carries a maximum sentence of 30 years in federal prison, while the money laundering charge carries up to 10 years.
Deutsch and Feldberger previously pleaded guilty for their roles and are awaiting sentencing.