Covid-19 pandemic fraud
COVID-19 Pandemic Fraud

Two from Toms River among three indicted for COVID-19 relief program fraud

CAMDEN, N.J. — Three New Jersey residents have been indicted for their involvement in a multimillion-dollar mortgage fraud scheme, with two of the three also charged with defrauding federal COVID-19 relief programs, according to an announcement by U.S. Attorney Philip R. Sellinger.

Arthur Spitzer, 37, of Toms River, faces a range of charges, including eight counts of wire fraud, bank fraud, conspiracy, aggravated identity theft, making false statements to a financial institution, and money laundering. Mendel Deutsch, 38, also of Toms River, is charged with similar crimes, including three counts of wire fraud, conspiracy, and money laundering. Joshua Feldberger, 42, of Howell, is charged with wire fraud, bank fraud, conspiracy, and aggravated identity theft.

The defendants were arraigned today before U.S. District Judge Edward S. Kiel in Camden federal court.

According to the indictment, in 2019 and 2020, Spitzer orchestrated a scheme to obtain fraudulent mortgage loans on properties in New Jersey and Brooklyn, New York. He allegedly misrepresented his control over properties he did not own, using forged documents to deceive lenders and property owners. The mortgage loans, often secured through fraudulent means, resulted in default, leaving the true property owners vulnerable to foreclosure.

In June 2020, Spitzer, along with Deutsch and Feldberger, allegedly conspired to make it appear as if Spitzer owned three Brooklyn properties, securing a $4 million mortgage loan through false documentation and forged signatures. The proceeds from the loan were used to fund Deutsch’s down payment, which had been falsely represented as already paid.

Additionally, Spitzer and Deutsch are accused of fraudulently obtaining approximately $3 million in Economic Injury Disaster Loans (EIDLs) from the federal government, intended for small businesses impacted by the COVID-19 pandemic. The defendants reportedly submitted false loan applications, misrepresenting the number of employees and financial status of businesses with little or no operations to secure the relief funds.

The investigation into the fraudulent schemes is ongoing.

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