Moshe Silber’s Attorney Accuses DOJ of Lying

Moshe Silber and Fredrick Schulman delayed their sentencing until February as they level allegations against federal prosecutors and more details emerge about Silber’s net worth.

The Department of Justice charged Silber and Schulman for their involvement in an alleged fraudulent flip of a rental property in Cincinnati. Last summer, both pleaded guilty to one count of conspiracy to commit wire fraud with a maximum sentence of five years in prison.

But their original sentencing date in January was pushed back to February 6 after Silber’s attorney made some harsh allegations against the government’s case.

Silber’s attorney Eric Kanefsky alleged at the January hearing there are “continued misrepresentations and outright lies to (the) defense counsel.”

As The Real Deal reported on the legal proceedings, it discovered a copy of Silber’s financial statements buried in an exhibit attached as part of a lawsuit in New York Supreme Court. The extent of Silber’s business and personal wealth was previously unknown.

Silber listed the value of his real estate holdings in March 2022 at $1.3 billion with an equity stake of $621 million. He had cars and jewelry valued at $2.2 million.

Most striking, Silber owned a private jet worth $61 million, the filing shows.

Silber’s personal residences included three properties in Suffern, including a 7-bedroom estate at 1092 Haverstraw Road, which he valued at $6.5 million. He also owned a home in London, his financial statements show.

The majority of his commercial real estate holdings were held in a portfolio known as CBRM. The assets, valued at about $600 million, include apartments in New Orleans, Jackson, Mississippi, East St. Louis, Illinois, and Flint, Michigan. His most valuable asset in the CBRM portfolio was the Williamsburg of Cincinnati, the property at heart of the DOJ’s fraud allegations.

Silber’s day in court

Silber’s attorney did not go into specifics about its allegations against the prosecutors during the hearing. Some claims, however, relate to the amount of loss the lender took as a result of the fraud, according to a hearing transcript.

Other allegations appear to be directed at one prosecutor, assistant U.S. Attorney Martha Kathleen Nye.

“Some accusations have been made by counsel, some allegations that are personal in nature that affect me as an attorney, that affect my career, really,” said Nye at the hearing.

“These are very serious allegations, Mr. Kanefsky. I’ve never leveled them as a lawyer, and I’ve never been the recipient of them,” said U.S. District Court Judge Robert Kirsch.

Since pleading guilty, Silber, 35, of Suffern, New York, has faced distress across his portfolio. In December, he and the DOJ reached an agreement, which essentially banned Silber from the commercial or residential real estate business.

Silber’s attorney did not return a request for comment. The U.S. Attorney’s office declined to comment.

Last year, Silber lost control of an 11,000 rental portfolio in New Orleans, according to The Promote. Lynd, who took control of the properties, valued it at $800 million, the newsletter reported.

In Chicago, Fannie Mae recently foreclosed on six multifamily buildings totaling 150 units linked to Silber. The buildings were allegedly left in disrepair, according to public records.

The DOJ alleges that Silber and business partner Schulman presented their lender and Fannie Mae with a stolen identity and an inflated purchase price to secure a $74.25 million loan for the Williamsburg of Cincinnati. The loan was larger than the actual sales price of the $70 million. As Silber awaits sentencing, prosecutors alleged he violated the terms of his release.

The DOJ’s concern appears to be connected with Silber’s role at NB Affordable, an affordable housing firm. A Pittsburgh apartment complex owned by an affiliate of NB Affordable, Mon View Apartments, has come under scrutiny from the local District Attorney. The D.A. alleges the owner failed to pay electricity bills and raw sewage from the buildings spilled onto the streets.