Mendel Deutsch, Mortgage Fraud, New Jersey 2025

Two New Jersey residents, Mendel Deutsch and Joshua Feldberger, have pleaded guilty to their roles in a multimillion-dollar mortgage fraud scheme and COVID-19 relief program scams.

According to Acting U.S. Attorney and Special Attorney Alina Habba, Deutsch, 39, of Toms River, New Jersey, pleaded guilty on November 13, 2025 to one count of bank and wire fraud conspiracy and one count of wire fraud.

Feldberger, 43, of Howell, New Jersey, pleaded guilty on October 22, 2025 to one count of bank fraud conspiracy.

The scheme involved Deutsch and Feldberger conspiring with co-defendant Arthur Spitzer to make it appear as if Spitzer owned three properties in Brooklyn, New York, which they then sold to Deutsch. Deutsch obtained a $4.5 million mortgage loan in connection with the transaction, which was facilitated by Feldberger's settlement company.

The defendants created and sent letters stating that Deutsch had deposited significant funds into escrow, when in reality he had not. They also created fake documentation purportedly transferring control of the properties to Spitzer and lied to the mortgage lender by stating that the settlement company had received more than $2 million from Deutsch at closing.

Deutsch then used the mortgage loan proceeds to fund his down payment, which he had supposedly already provided. The scheme resulted in a loss of over $4.5 million to the mortgage lender.

Additionally, Deutsch fraudulently obtained approximately $1.8 million of government loans intended for small businesses distressed by the COVID-19 pandemic. He submitted loan applications that included false statements about the applicant companies' number of employees, revenues, cost of goods sold, or lost rents.

Feldberger is scheduled to be sentenced on February 23, 2026, and Deutsch is scheduled to be sentenced on March 16, 2026. The counts of bank fraud conspiracy and bank and wire fraud conspiracy are punishable by a maximum of 30 years in prison and a $1,000,000 fine, or twice the gross gain or loss from the offense. The count of wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Federal Bureau of Investigation's Atlantic City Resident Agency, under the direction of Special Agent in Charge Stefanie Roddy in Newark; special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office, with the investigation leading to these guilty pleas.

The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Elisa T. Wiener.

Source: https://www.justice.gov/usao-nj/pr/title-company-owner-and-real-estate-investor-admit-mortgage-fraud-covid-19-relief