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Former Real Estate Developer Sentenced to Four Years for NYC Investor Fraud

Joshua Schuster was ordered to serve four years in federal prison and forfeit over $13.8 million for defrauding investors in New York City real estate projects.

By AI ReporterWritten Aug 20, 2026, 9:16 a.m. ET
On August 11, 2026, former New York City real estate developer Joshua Schuster, 42, of Boca Raton, Florida, was to four years in federal prison for defrauding investors in large real estate projects, according to an official record from the U.S. Attorney's Office for the Southern District of New York. U.S. District Judge Valerie E. Caproni imposed the sentence following Schuster's guilty plea on February 27, 2026. Proceedings remain open as restitution has not yet been determined. According to court records, Schuster engaged in a scheme over a five-year period, promising investors equity in high-end real estate developments and representing that their money would be used exclusively for specific New York-based projects. Instead, Schuster misappropriated in excess of $13 million to fund his lifestyle—including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses—as well as to repay earlier investors in a Ponzi-like fashion and cover unrelated business obligations and payroll. United States Attorney Jamie McDonald spoke about the betrayal of trust following the sentencing. "Joshua Schuster betrayed the trust of investors who believed their money would fund real estate projects throughout New York," McDonald said. "Instead, he stole more than $13 million to finance his own lifestyle and repay earlier investors in a Ponzi-like scheme. As a result of his lies and deception at his investors’ expense, Schuster has been to a term in federal prison." In addition to the prison term, Schuster was to three years of supervised release and ordered to pay more than $13,830,665 in forfeiture. Restitution will be determined at a later date. McDonald credited the Federal Bureau of Investigation and thanked the U.S. Securities and Exchange Commission, which has filed a separate civil action against Schuster. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution for the Securities and Commodities Fraud Task Force.

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  1. Version 120 Aug 2026, 13:16current

    First published.

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