The founder of Silverback Development appeared in Manhattan federal court Friday afternoon, where he admitted that he lied when he raised money from investors for certain development projects, knowing full well at the time that he intended to use the money for other purposes.
“I knew what I did was wrong and I am ashamed of those decisions,” he said.
Schuster, 42, appeared in court dressed in a gray suit and listened intently as District Judge Valerie Caproni explained that once he entered his guilty plea, he could not take it back.
Schuster had pleaded not guilty in May to one count of wire and securities fraud, but earlier this month prosecutors informed Caproni that Schuster planned to change his plea.
He faces a prison sentence of 20 years, which Caproni set on July 9.
Prosecutors said they had reached a $13 million forfeiture agreement with Schuster to repay his victims, although they had not yet asked the judge to enter a consent order.
During the hearing, Schuster revealed that he was being treated for depression and bipolar disorder. He said he entered a drug abuse and alcohol treatment program in 2022 and has been sober since.
That was shortly afterwards The real deal brought to light allegations in 2021 that Schuster had embezzled investors’ money in several of his development projects. He moved to Florida and tried to reinvent himself as a developer of solar energy projects.
But last year, federal prosecutors accused him of running a $10 million Ponzi scheme.
The Securities and Exchange Commission also has a case against him, seeking to recover the money he received from his alleged scam. The case is still ongoing.
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