Who is left holding the bag for Josh Schuster?

8 minutes read

Josh Schuster once seemed destined to be the next big thing in New York City development. Instead, he’s awaiting sentencing for securities fraud and his victims are left picking up the pieces.

On the latest episode of The Real Deal’s “Deconstruct” podcast, commercial bureau chief Rich Bockmann takes listeners through the saga that landed the Silverback Development founder in trouble and the untold story of what happens next for those who believed in Schuster.

Things for Schuster began to fall apart five years ago when partners discovered his theft and kicked him out of his marquee development, a $150 million condo building near Gramercy Park. Construction ultimately wrapped in 2022 and the development has gone on to see success.

Schuster pledged interests in the project to multiple people; to aid his fraud, he also created a complex business structure, which has made sorting things out difficult. His deception and double-dealing pit victims against one another as they try to recoup what was stolen.

Bockmann attempts to unravel the web and walk us through who is entitled to the profits at 250 East 21st Street.

In February, Schuster admitted to stealing more than $10 million from his investors in what prosecutors deemed a Ponzi-like scheme. The fraud charge carries a maximum sentence of 20 years, but federal guidelines for a first-time offender caps it at 63 months. The judge in the case scheduled a sentencing hearing for July.

This episode of “Deconstruct” also breaks down a busy week in real estate news: how record bonuses on Wall Street could move the luxury housing markets in Manhattan and the Hamptons, a court date is set for former Vornado executive Jared Solomon on embezzlement charges, Palantir relocates its headquarters from Colorado to South Florida and the shocking killing of a prominent real estate player in Chicago.

Be sure to check out “Deconstruct” on Spotify, Apple Podcasts and wherever else you listen to podcasts.