Two residents of New Jersey have pleaded guilty to their roles in a mortgage fraud scheme involving millions of dollars, with one also admitting to defrauding federal COVID-19 relief programs. The announcement was made by Acting U.S. Attorney and Special Attorney Alina Habba.
Mendel Deutsch, 39, from Toms River, entered his plea on November 13, 2025, before U.S. District Judge Edward S. Kiel. He pleaded guilty to one count of bank and wire fraud conspiracy and one count of wire fraud. Joshua Feldberger, 43, from Howell, pleaded guilty on October 22, 2025, before the same judge to one count of bank fraud conspiracy.
Court documents state that in June 2020, Arthur Spitzer conspired with Deutsch and Feldberger to make it appear that Spitzer owned three properties in Brooklyn and agreed to sell them to Deutsch. Deutsch then obtained a $4.5 million mortgage loan for the transaction. Feldberger’s settlement company facilitated the fraudulent deal. According to prosecutors, “The defendants created and sent letters stating that Deutsch had deposited significant funds into escrow toward the transaction, when in reality he had not; they created fake documentation purportedly transferring control of the properties to Spitzer; and they lied to the mortgage lender by stating that the settlement company had received more than $2 million from Deutsch at closing, which led the mortgage lender to fund the loan.” The proceeds from this loan were then used as Deutsch’s down payment.
Additionally, between 2020 and 2021, Deutsch fraudulently secured about $1.8 million in government loans meant for small businesses impacted by the COVID-19 pandemic. These loans were part of the Economic Injury Disaster Loans (EIDLs) program authorized under the CARES Act—a law passed in March 2020 to provide financial assistance during the pandemic through loans administered by the U.S. Small Business Administration (SBA). To qualify for these loans, businesses needed to submit details about their operations including employee numbers and revenues or expenses. Authorities allege that “Deutsch obtained EIDL loans for businesses that had little or no operations by submitting loan applications that included false statements about the applicant companies’ number of employees, revenues, cost of goods sold, or lost rents.”
The maximum penalty for bank fraud conspiracy and bank and wire fraud conspiracy is up to 30 years in prison and a $1 million fine or twice the gross gain or loss from the offense. The wire fraud charge carries up to 20 years in prison and a $250,000 fine or twice the gross gain or loss.
Feldberger’s sentencing is scheduled for February 23, 2026; Deutsch will be sentenced on March 16, 2026.
Acting U.S. Attorney Habba credited special agents from several agencies for their work: “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.”
Assistant U.S. Attorneys Daniel A. Friedman and Elisa T. Wiygul are prosecuting this case.
Charges remain pending against Arthur Spitzer; he is presumed innocent unless proven guilty.
Defense counsel are Timothy Sini for Deutsch; Zach Intrater for Feldberger; Henry Mazurek and Jason Ser for Spitzer.
