Moshe Silber pleaded guilty this summer for his role in a commercial mortgage fraud scheme designed to dupe Fannie Mae. But that wasn’t the end of his troubles.
The crime involved a Cincinnati rental complex that Silber and business partner Fred Schulman acquired. They showed their lender and Fannie Mae a stolen identity and an inflated purchase price to score a larger loan than they otherwise would have received, according to the Department of Justice.
But as Silber, 34, awaits sentencing, the DOJ alleged he violated the terms of his release. Silber denied the prosecutors’ allegations, only to reach an agreement with the agency that essentially prohibits him from participating in any residential or commercial real estate business.
The DOJ’s concerns about Silber appear to be connected to Silber’s involvement with NB Affordable, an affordable housing firm once led by Silber’s co-conspirator, Schulman.
Silber is banned from operating, managing or advising NB Affordable, according to the order filed in U.S. federal court. He is also forbidden to communicate with current and former employees of NB Affordable.
Silber’s new terms come as an NB Affordable affiliate faces scrutiny from Allegheny County District Attorney Stephen Zappala. The D.A. filed criminal charges against the LLC that owns the Mon View Apartments outside of Pittsburgh for allegedly causing or risking catastrophe.
Zappala said the Department of Housing of Urban Development provided subsidies for the apartment complex in August and October, but the owner never put that money into the properties. The DA also alleged that the owner failed to pay electricity bills and that raw sewage from the buildings spilled on the streets.
“I can honestly tell you guys, I have not seen a circumstance like this where people have to live under conditions like this,” said Zappala at a press conference in October.
Tenants at other NB Affordable properties in the Pittsburgh area have also complained, sending a letter to HUD about deplorable living conditions.
Silber, Schulman and NB Affordable were not named in the Allegheny County criminal complaint.
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Silber is now prohibited from participating in the managing, financing, renovation or sale of any property. He is also banned from raising capital and seeking to obtain financing from any business entity. Silber is further required to notify lenders about a change in control of ownership of any LLCs or properties he owned.
Silber’s attorney declined to comment. A hearing for his sentencing will be held on Jan. 14.