M
oshe Silber, who pleaded guilty this summer for his role in a commercial mortgage fraud scheme targeting Fannie Mae, faces further consequences. The scheme involved a Cincinnati rental complex where Silber and business partner Fred Schulman acquired the property using a stolen identity and inflated purchase price to secure a larger loan than they would have otherwise received.

    As Silber awaits sentencing, the Department of Justice alleged he violated the terms of his release. Silber denied these allegations but eventually reached an agreement with the agency that prohibits him from participating in any residential or commercial real estate business. The DOJ's concerns appear connected to Silber's involvement with NB Affordable, a firm once led by Schulman.

    Silber is now banned from operating, managing, or advising NB Affordable and cannot communicate with its current or former employees. This comes as an NB Affordable affiliate faces scrutiny for allegedly causing or risking catastrophe at the Mon View Apartments outside of Pittsburgh. The owner of the complex failed to use Department of Housing and Urban Development subsidies and neglected electricity bills, resulting in raw sewage spilling onto streets.

    Tenants at other NB Affordable properties have also complained about deplorable living conditions, prompting a letter to HUD. Silber's new terms also include restrictions on managing, financing, renovating, or selling any property, as well as raising capital and seeking financing from business entities. He must notify lenders of any changes in ownership control of LLCs or properties he owns.

    A hearing for Silber's sentencing will be held on January 14.