Howell resident Joshua Feldberger, owner of a Lakewood title and settlement company, has admitted his part in a complex real estate scam that netted millions through unauthorized loans on properties in Brooklyn. The guilty plea comes after federal charges tied him to a 2019-2020 operation run primarily by Toms River locals Arthur Spitzer and Mendel Deutsch.
Details of the Mortgage Fraud Scheme
Federal prosecutors say Spitzer targeted homes and buildings in New Jersey and Brooklyn that either had no existing mortgages or carried liens well below market value. Using counterfeit documents and forged signatures, he convinced lenders he owned or controlled the assets. Loan proceeds then landed in his personal accounts without any real transfer of ownership.
The standout transaction involved properties on Malcolm X Boulevard in Brooklyn. Here, the group allegedly secured a $4 million loan for assets Spitzer never owned. To create the appearance of a legitimate sale from Spitzer to Deutsch, Feldberger stepped in with his title expertise.
Feldberger’s Role in Creating Fake Documents
As head of his settlement firm—public records point to Universal Abstract (now closed) in Lakewood—Feldberger prepared false records showing Spitzer held membership interests in the Brooklyn property entities. These invented stakes allowed the supposed transfer to Deutsch.
He also had an employee send a letter to the bank claiming Deutsch deposited funds into escrow for the purchase. This convinced the lender to release the $4 million. In reality, loan money funded Deutsch’s down payment on the same properties, while $100,000 went to a Feldberger relative to settle a debt with Spitzer.
Separate Pandemic Loan Fraud
In another layer, Spitzer and Deutsch allegedly grabbed $3 million in federal COVID relief loans meant for distressed small businesses, diverting the aid for personal gain.
Charges, Plea Deal, and Upcoming Sentencing
The September 2024 indictment hit Feldberger with five counts: wire fraud, bank fraud, conspiracies to both, aggravated identity theft, and false statements to a bank. Represented by Zach Intrater of Agnifilo Intrater, he pleaded guilty on October 22 to just bank fraud conspiracy before Judge Edward Kiel.
Sentencing is scheduled for February in Camden federal court. The charge allows up to 30 years, but plea deals typically mean far less. Feldberger claims he earned $21,000; prosecutors say $100,000. Loss estimates range from over $3.5 million to under $9.5 million, with Feldberger contesting the higher end.
More on Title Industry Fraud
This marks the first federal case charging a title company owner or executive. The DOJ and Federal Housing Finance Agency target schemes involving property flips, inflated rents, or no-equity buys to extract oversized loans.
A similar 2024 case saw Michigan’s Aron Puretz sentenced to five years for flipping an office complex to insiders at a markup, securing a $45 million JPMorgan loan.
New Jersey’s active real estate market makes vigilance key. Buyers and lenders should verify title chains, escrow flows, and ownership docs to avoid falling into hidden traps like these. Feldberger’s outcome could set precedents for how settlement pros face scrutiny in future probes.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.