Former New York City Real Estate Developer Sentenced To Four Years For Defrauding Investors

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that Joshua Schuster was sentenced to four years in prison for his role in a scheme to defraud investors in large real estate development projects located in New York City. SCHUSTER pled guilty on February 27, 2026, before U.S. District Judge Valerie E. Caproni, who imposed today's sentence.

"To preserve the integrity of and confidence in our financial markets, this Office will work tirelessly to prosecute fraud and protect investors in these markets," said U.S. Attorney Jamie McDonald. "Joshua Schuster betrayed the trust of investors who believed their money would fund real estate projects throughout New York. 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 sentenced to a term in federal prison."

According to the Indictment, plea agreement, and statements made in Court:

Over a five-year period, SCHUSTER engaged in a scheme to defraud investors who had entrusted him with millions of dollars to finance real estate development projects in New York City. SCHUSTER induced investors to contribute capital to his projects by promising them equity in high-end real estate developments, and by representing that investor funds would be used exclusively for the acquisition and development of specific New York-based projects. Instead, SCHUSTER misappropriated in excess of $13 million dollars in investor money to fund his lifestyle, including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses; to repay earlier investors in a Ponzi-like fashion; and to cover unrelated business obligations and payroll.

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In addition to the prison term, SCHUSTER, 42, of Boca Raton, Florida, was sentenced to three years of supervised release and will be required to pay more than $13,830,665 in forfeiture. SCHUSTER will also be required to pay restitution, which will be determined at a later date.

Mr. McDonald praised the outstanding work of the Federal Bureau of Investigation. Mr. McDonald also thanked the U.S. Securities and Exchange Commission, which has filed a separate civil action against SCHUSTER, for its assistance and cooperation in the investigation.

This prosecution is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.