FORMER NEW YORK CITY REAL ESTATE DEVELOPER PLEADS GUILTY TO DEFRAUDING INVESTORS

Press Release FORMER NEW YORK CITY REAL ESTATE DEVELOPER PLEADS GUILTY TO DEFRAUDING INVESTORS Friday, February 27, 2026 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York United States Attorney for the Southern District of New York, Jay Clayton, announced today that JOSHUA SCHUSTER pled guilty before U.S. District Judge Valerie E. Caproni to securities fraud for his role in a scheme to defraud investors in large real estate development projects located in New York City. SCHUSTER is scheduled to be sentenced on July 9, 2026. “Joshua Schuster promised to use investor funds to develop real estate projects throughout our City,” said U.S. Attorney Jay Clayton. “Schuster instead constructed a fraud, stealing more than $13 million from his investors in order to fund his lifestyle and pay off earlier investors in a Ponzi-like fashion. Fraud in the Real Estate market costs all New Yorkers, including through higher rents and home prices. This Office will continue to work with our law enforcement partners to protect investors in this market—and all markets—from fraudsters who line their own pockets at the expense of New Yorkers.”According to the Indictment, plea agreement, and statements made in Court:Over a five year period, JOSHUA 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.* * *SCHUSTER, 42, of Boca Raton, Florida, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton 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.26-042 ### Updated February 27, 2026 Component USAO - New York, Southern Press Release Number: 26-042

Press Release FORMER NEW YORK CITY REAL ESTATE DEVELOPER PLEADS GUILTY TO DEFRAUDING INVESTORS Friday, February 27, 2026 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York United States Attorney for the Southern District of New York, Jay Clayton, announced today that JOSHUA SCHUSTER pled guilty before U.S. District Judge Valerie E. Caproni to securities fraud for his role in a scheme to defraud investors in large real estate development projects located in New York City. SCHUSTER is scheduled to be sentenced on July 9, 2026. “Joshua Schuster promised to use investor funds to develop real estate projects throughout our City,” said U.S. Attorney Jay Clayton. “Schuster instead constructed a fraud, stealing more than $13 million from his investors in order to fund his lifestyle and pay off earlier investors in a Ponzi-like fashion. Fraud in the Real Estate market costs all New Yorkers, including through higher rents and home prices. This Office will continue to work with our law enforcement partners to protect investors in this market—and all markets—from fraudsters who line their own pockets at the expense of New Yorkers.”According to the Indictment, plea agreement, and statements made in Court:Over a five year period, JOSHUA 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.* * *SCHUSTER, 42, of Boca Raton, Florida, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton 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.26-042 ### Updated February 27, 2026 Component USAO - New York, Southern Press Release Number: 26-042