Josh Schuster was released from a Florida jail on a $2 million bond as he awaits arraignment on criminal fraud charges in New York later this week.
Schuster, the former head of New York-based Silverback Development, was arrested in Florida Wednesday on charges that he stole more than $10 million from investors in a Ponzi-like scheme between 2018 and 2022.
The 41-year-old Boca Raton resident was released on a $2 million personal surety bond cosigned by his wife, father and sister, who would be responsible for paying if Schuster failed to appear in court.
Schuster’s attorney declined to comment.
The Manhattan U.S. attorney and the FBI charged Schuster with one count each of wire fraud and securities fraud, alleging he misled investors and used their money to fund personal expenses like a $1 million personal credit card bill and thousands of dollars in gambling losses, as well as business payroll and other expenses unrelated to their real estate investments.
He faces up to 20 years in prison on each count.
In a separate case, the Securities and Exchange Commission filed a civil complaint that calls for Schuster to return the alleged “ill-gotten gains” plus interest and civil penalties. The SEC is also asking the court to bar him from buying or selling any unregistered securities.
In 2021, The Real Deal first uncovered details about financial problems at Silverback and allegations that Schuster had misappropriated money from investors. He was removed from several of his projects and relocated to Florida, where he sought to remake himself with a new real estate company installing solar farms on commercial rooftops.
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