Two residents of New Jersey have admitted to their roles in a multimillion-dollar mortgage fraud scheme, with one also pleading guilty to fraudulently obtaining over $1.8 million in federal loans intended for COVID-19 relief, according to an announcement from Acting U.S. Attorney and Special Attorney Alina Habba.
Mendel Deutsch, 39, of Toms River, pleaded guilty on November 13, 2025, before U.S. District Judge Edward S. Kiel to charges of bank and wire fraud conspiracy and wire fraud. Joshua Feldberger, 43, of Howell, entered his guilty plea on October 22, 2025, before the same judge for bank fraud conspiracy.
Court documents state that in June 2020 Arthur Spitzer conspired with Deutsch and Feldberger to create the appearance that Spitzer owned three Brooklyn properties and would sell them to Deutsch. Deutsch then secured a $4.5 million mortgage loan for the supposed transaction. Feldberger’s settlement company facilitated the deal.
The defendants generated letters indicating that Deutsch had deposited significant escrow funds—when he had not—and produced false documents showing property control transferred to Spitzer. They also falsely informed the lender that Feldberger’s company had received more than $2 million from Deutsch at closing, prompting disbursement of the loan. The proceeds were then used as Deutsch’s down payment, which was reported as already paid.
Additionally, between 2020 and 2021, Deutsch obtained about $1.8 million in government loans meant for small businesses affected by the COVID-19 pandemic by submitting applications containing false information regarding employee numbers and financial data for companies with minimal or no operations.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 to provide financial assistance during the pandemic through programs such as Economic Injury Disaster Loans (EIDLs). These loans could be up to $2 million per eligible business suffering economic disruption due to COVID-19.
If convicted on all counts, both men face significant penalties: bank fraud conspiracy and bank and wire fraud conspiracy carry maximum sentences of 30 years imprisonment and fines up to $1 million or twice the gain or loss; wire fraud is punishable by up to 20 years imprisonment and a fine up to $250,000 or twice the gain or loss.
Feldberger's sentencing is scheduled for February 23, 2026; Deutsch will be sentenced on March 16, 2026.
Acting U.S. Attorney and Special Attorney Habba commended special agents from multiple agencies for their investigative 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," she said.
Assistant U.S. Attorneys Daniel A. Friedman and Elisa T. Wiygul are prosecuting this case out of Camden.
Arthur Spitzer faces pending charges related to this case but is presumed innocent unless proven guilty.
Defense counsel representing each defendant includes Timothy Sini for Deutsch; Zach Intrater for Feldberger; Henry Mazurek and Jason Ser for Spitzer—all based in New York.
