Moshe Silber and Fred Schulman Face Felony Charges

Moshe Silber and Fred Schulman are set to be sentenced this week for their role in a commercial mortgage fraud scheme in Cincinnati.

But now their problems just got worse.

The Allegheny County District Attorney’s Office charged Silber, 36, and Frederick Schulman, 73, and Jonathan Liani, 45, with multiple felony charges on Tuesday.

The charges relate to their ownership of the Mon View Heights housing complex outside of Pittsburgh along with at least 11 other “nuisance properties” in the area. The D.A. alleges the tenants at those properties faced deplorable living conditions.

The charges include theft by “unlawful taking, receiving stolen property, dealing in the proceeds of illegal activity and criminal conspiracy.”

Allegheny County District Attorney Stephen Zappala said after receiving complaints from West Mifflin the D.A. started monitoring “all situations pertaining to subsidized housing.”

“It became clear there is a lack of accountability, and for that, the residents continue to suffer,” said Zappala. “However, we intend to hold those responsible for this failure to provide safe and decent housing.”

Last year, the D.A. filed criminal charges against the LLC that owns the Mon View apartments for causing or risking catastrophe.

Zappala said the Department of Housing and Urban Development (HUD) provided subsidies for the apartment complex, but the owner never put that money into the properties.

The owner allegedly failed to pay electric bills and raw sewage from the buildings spilled onto 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.

After Zappala’s press conference, the Department of Justice claimed Silber violated terms of his release. He eventually reached an agreement with prosecutors preventing him from participating in any residential or commercial real estate business.

Silber lived large. Recently discovered financial statements by TRD show Silber valued his real estate portfolio at $1.3 billion. He also owned a private jet valued at $61 million.

Silber and Schulman were set to be sentenced on February 6 after pleading guilty to one count of conspiracy to commit wire fraud. The fraud involved the use of a fake flip on a rental property, the Williamsburg of Cincinnati, allowing the owners to obtain a larger loan than they otherwise would have received. They face up to five years in prison.