Josh Schuster Gets 4 Years in Prison For Ponzi Scheme

Josh Schuster has been sentenced to four years in federal prison for orchestrating a $13 million Ponzi scheme.

The disgraced developer was also ordered to three years of supervised release on top of the prison stint, U.S. District Judge Valerie E. Caproni issued in a Tuesday hearing in the Southern District of New York. 

“The issue with fraudsters is that it’s really hard to know whether you’re being sincere,” Caproni said, referring to Schuster’s plea for mercy.

Schuster, 42, told Caproni that his life had spiraled out of control due to drugs and alcohol, but that he has been sober for four years. He said the man he is today is not the same person he was when he was lying and stealing from his investors.

“I can finally see through a clear lens,” he said in the courtroom, which was filled with a number of his family members as well as some of his victims. 

“For 20 years I measured my success by buildings, fancy things and financial achievements,” he said, referring to the lavish lifestyle he financed through stolen money. “I stopped trying to look successful and just tried to be a better person.”

One of the issues Caproni considered in her sentence was whether Schuster truly did change his ways after his fraud was discovered out of enlightenment, or fear of getting caught. She noted that when the developer relocated from New York to Boca Raton to start over again, he rented a swanky house and bought a Ford Bronco. His wife drives an expensive Mercedes-Benz.

“I don’t think you’ve given up the desire to look like you’re successful,” she said. 

Schuster is scheduled to surrender himself to the Federal Bureau of Prisons on Oct. 20.

He pleaded guilty to one count of securities fraud, which carries a maximum sentence of 20 years.

Federal sentencing guidelines recommended a term for a first-time offender like Schuster of 4.25 to 5.25 years, while Caproni said that people who committed similar crimes received an average sentence of 41 months.

Schuster had asked to be sentenced to home confinement, which Caproni denied, saying she thought it was important to issue a sentence that would deter white-collar crime.

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