Two residents of New Jersey have pleaded guilty to charges related to a multimillion-dollar mortgage fraud scheme, with one also admitting to fraudulently securing over $1.8 million in federal pandemic relief loans. The announcement was made by Acting U.S. Attorney and Special Attorney Alina Habba.
Mendel Deutsch, 39, from Toms River, admitted guilt on November 13, 2025, before U.S. District Judge Edward S. Kiel to one count of bank and wire fraud conspiracy and one count of wire fraud. Joshua Feldberger, 43, of Howell, pleaded guilty on October 22, 2025, before the same judge to one count of bank fraud conspiracy.
According to court documents and statements:
In June 2020, Arthur Spitzer conspired with Deutsch and Feldberger in a scheme involving three properties in Brooklyn, New York. Spitzer pretended to own the properties and agreed to sell them to Deutsch. Deutsch then obtained a $4.5 million mortgage loan for this transaction. Feldberger managed the transaction as the owner of the settlement company involved.
The group created false letters indicating that Deutsch had deposited substantial funds into escrow when he had not done so. They also produced fake documents showing transfer of control of the properties to Spitzer and misled the mortgage lender by stating that over $2 million had been received from Deutsch at closing. This misinformation led the lender to approve funding for the loan. The proceeds were then used as Deutsch’s down payment—money he was supposed to have already provided.
In addition, between 2020 and 2021, Deutsch secured about $1.8 million in government loans meant for small businesses affected by COVID-19 through fraudulent means. Under the CARES Act enacted in March 2020, which authorized Economic Injury Disaster Loans (EIDLs) for struggling small businesses through the U.S. Small Business Administration (SBA), applicants needed to provide accurate details about their operations such as employee numbers and revenues or expenses. Deutsch submitted applications containing false information regarding business activity levels and finances for companies that had minimal or no operations.
Each charge of bank fraud conspiracy or bank and wire fraud conspiracy carries a maximum penalty of up to 30 years in prison and a fine up to $1 million or twice the gross gain or loss from the offense; wire fraud is punishable by up to 20 years in prison and a $250,000 fine or twice the gross gain or loss.
Sentencing is set for Feldberger on February 23, 2026; Deutsch will be sentenced on March 16, 2026.
Acting U.S. Attorney and Special Attorney Habba acknowledged special agents from several agencies—including the Federal Bureau of Investigation’s Atlantic City Resident Agency under Special Agent Stefanie Roddy; Internal Revenue Service – Criminal Investigation under Jenifer L. Piovesan; and Federal Deposit Insurance Corporation – Office of Inspector General under Patricia Tarasca—for their roles in investigating these cases.
Assistant U.S. Attorneys Daniel A. Friedman and Elisa T. Wiygul are representing the government in this matter.
Arthur Spitzer still faces charges but remains presumed innocent unless proven guilty.
Defense counsel:
Deutsch: Timothy Sini
Feldberger: Zach Intrater
Spitzer: Henry Mazurek and Jason Ser
