CBRM Realty: Unwinding Silber's Fraud-Tainted Housing Portfolio

CBRM Realty Inc.'s chapter 11 case centers on an affordable housing portfolio controlled by Moshe (Mark) Silber, a real estate investor who pleaded guilty in July 2024 to a $119 million mortgage fraud conspiracy and was subsequently sentenced to 30 months in federal prison. The jointly administered cases in the District of New Jersey encompassed HUD-subsidized properties in Pittsburgh and Louisiana, filed by an enterprise whose principal was incarcerated at the time of the May 2025 petition and had been barred from real estate activities just five months earlier.

On September 4-5, 2025, Judge Michael B. Kaplan entered a Confirmation Order that facilitated the sale of the 110-unit Kelly Hamilton affordable housing complex in Pittsburgh to the DIP lender through a credit bid, while establishing a Creditor Recovery Trust funded with over $1.4 million to pursue claims against Silber and other insiders. The case featured dual DIP facilities totaling approximately $27 million with interest rates of 16-18%, with proceeds used to rehabilitate properties and fund the litigation trust. Reports of housing conditions had prompted the Allegheny County District Attorney to declare properties public nuisances, including documented instances of raw sewage running into streets, collapsed ceilings, and infestations of raccoons, skunks, and bedbugs.

Debtor(s)	CBRM Realty Inc.
Court	U.S. Bankruptcy Court, District of New Jersey
Case Number	25-15343
Petition Date	May 19, 2025
Confirmation Date	September 4-5, 2025
Judge	Hon. Michael B. Kaplan
DIP Facility	Kelly Hamilton: ~$9.7M (3650 SS1 Pittsburgh LLC, 16%); NOLA: ~$17.4M (DH1 Holdings / CKD Funding / CKD Investor Penn, 18%)

Moshe Silber and Rhodium Capital Advisors

Moshe (Mark) Silber built an affordable housing portfolio through Rhodium Capital Advisors LLC, accumulating at least 11,000 multifamily units across multiple states including New York, Pennsylvania, Ohio, and Louisiana. The portfolio focused on HUD-subsidized properties funded through federal rental assistance programs. In March 2023, NB Affordable—an entity associated with Silber's operations—acquired Pittsburgh's AHRCO portfolio, consisting of 14 buildings with approximately 1,300 HUD-subsidized units, committing $10 million for property upgrades.

Between 2018 and 2020, Silber and his co-conspirators Fredrick Schulman (a managing member of Rhodium Capital Advisors) and Chaim (Eli) Puretz engaged in a scheme to deceive lenders and Fannie Mae into funding mortgages based on materially false information.

Williamsburg of Cincinnati. The federal prosecution centered on the acquisition of a multifamily property in Cincinnati. Silber and Schulman acquired the Williamsburg of Cincinnati for an actual purchase price of $70 million but fraudulently represented the price as $95.85 million. They accomplished this by conducting two separate closings on March 8, 2019—one reflecting the actual sale price and another reflecting the inflated price. Using a stolen identity and forged documents, the conspirators secured a $74.25 million loan from Fannie Mae.

The conspirators obtained a second fraudulent loan of approximately $45 million, bringing the total fraud to approximately $119 million. The conduct involved falsified closing documents, fictitious parties, and misrepresented equity contributions.

Guilty Pleas and Sentencing.

The federal investigation resulted in guilty pleas from all three conspirators:

The sentencing occurred in March 2025, with Silber receiving 30 months of federal incarceration. Silber was released to a halfway house in New York in December 2025.

Federal bar from real estate. Beyond criminal prosecution, a federal court in December 2024 imposed a ban prohibiting Silber from involvement in real estate activities. The order barred him from managing, financing, renovating, or selling any property, as well as from raising capital or seeking financing from any business entity.

Housing Conditions and Enforcement Actions

Reports and enforcement actions described property conditions and cited code violations across the portfolio.

Mon View Heights. Mon View Apartments LLC acquired the Mon View Heights housing complex in West Mifflin, Pennsylvania at the start of 2023 and consistently failed to make necessary improvements. In summer 2024, code enforcement crews inspected 129 units—96 did not pass inspection, a failure rate exceeding 74%.

The Allegheny County District Attorney's Office filed public nuisance charges against the complex, and District Attorney Stephen Zappala personally toured the property in October 2024. Reports cited:

• Missing windows throughout occupied units
• Leaking pipes causing water damage
• Open sewage in common areas
• Collapsed ceilings
• No hot water for residents
• Raw sewage running into the street from an open manhole
• Infestations of raccoons, skunks, bedbugs, roaches, and mold

Zappala said, "It's almost as if the owners of this property want it to fail." Search warrants revealed that Mon View's owners did not use their HUD payments at the complex.

HUD funds diversion. The property generated approximately $230,000 per month in rent, with one-third from residents and the remaining two-thirds from HUD subsidies. In February 2025, Silber and Schulman faced Pennsylvania state charges for diverting over $580,000 in HUD funds that were earmarked for the Mon View Heights complex and other subsidized housing projects.

Tenant advocacy. The conditions prompted residents and advocates to organize protests demanding action.

Reasons for Filing

The chapter 11 petitions filed in May 2025 followed a series of events affecting the portfolio, as described in the First Day Declaration.

Principal incarceration and regulatory ban. Silber was incarcerated and barred from real estate activities. The December 2024 ban prohibited him from managing, financing, renovating, or selling any property, and from raising capital or seeking financing from any business entity.

Lender foreclosure actions. Prepetition lenders had initiated foreclosure proceedings against multiple properties. The automatic stay provided by chapter 11 halted these actions.

Deferred maintenance and capital requirements. The properties required rehabilitation investment to address deferred maintenance and code violations. The DIP financing approved in the cases was structured to fund capital expenditures and operating expenses.

Capital Structure at Filing

The debtor entities entered bankruptcy with secured debt structures tied to individual properties.

Kelly Hamilton Prepetition Debt.

NOLA Prepetition Debt.

The Louisiana properties carried a capital structure involving multiple lenders:

The prepetition debt would form the basis for the roll-up component of the NOLA DIP facility, with existing lenders providing new money to fund operations while converting their prepetition claims to DIP status.

Debtor Entities and Joint Administration

The bankruptcy encompassed affiliated entities that held interests in various properties:

Lead case. CBRM Realty Inc. (Case No. 25-15343) served as the lead debtor for joint administration purposes.

Kelly Hamilton debtors. Kelly Hamilton Apts LLC (the borrower under the Kelly Hamilton DIP) and Kelly Hamilton Apts MM LLC held interests in the 110-unit Pittsburgh property.

NOLA debtors. The Louisiana properties were held through multiple entities including Crown Capital Holdings LLC, RH Chenault Creek LLC, RH Copper Creek LLC, RH Lakewind East LLC, RH Windrun LLC, RH New Orleans Holdings LLC, and RH New Orleans Holdings MM LLC.

The joint administration motion was filed immediately after the petition date.

Dual DIP Financing Structure

The DIP Motion proposed two separate DIP facilities serving different debtor groups, each with distinct lenders and terms.

Kelly Hamilton DIP Facility.

NOLA DIP Facility.

The NOLA DIP was structured as a hybrid of new money and roll-up, with the prepetition lenders converting approximately $9 million of their existing claims to DIP status while providing an additional $8.4 million of fresh capital.

Use of DIP proceeds. The combined facilities funded:

• Payoff of existing mortgage indebtedness (Kelly Hamilton)
• Rehabilitation and capital expenditures to address deferred maintenance
• Ordinary course operating expenses
• Working capital and general corporate purposes
• Funding of the Creditor Recovery Trust with over $1.4 million to pursue claims against insiders

363 Sale: Kelly Hamilton Apartments

The chapter 11 plan incorporated a section 363 sale of the Kelly Hamilton property to the stalking horse bidder, structured as a credit bid transaction.

Bidding Procedures.

The stalking horse was an affiliate of the property's existing property and asset manager.

Sale Outcome.

No competing bids emerged by the August 14 deadline, and the Kelly Hamilton property was acquired by the stalking horse bidder through its credit bid.

Chapter 11 Plan and Confirmation

The debtors filed their initial joint chapter 11 plan and disclosure statement on June 30, 2025, with subsequent revisions before confirmation on September 4-5, 2025.

Plan Development.

The plan was accepted by nearly all creditors.

Key Plan Terms.

Kelly Hamilton sale. The plan implemented the sale of the Kelly Hamilton property to the stalking horse bidder through its credit bid, with the sale proceeds (in the form of satisfied DIP claims) funding creditor recoveries.

NOLA properties. The Louisiana properties were subject to sale or restructuring under the plan, with the NOLA DIP lenders positioned to acquire assets if no superior bids emerged.

Creditor Recovery Trust. The plan established a litigation trust funded with over $1.4 million from DIP proceeds to pursue claims against Moshe Silber and other insiders, including claims for fraud, breach of fiduciary duty, conversion, and diversion of funds. An independent trustee was appointed to manage the litigation. Silber's personal bankruptcy filing in September 2025 stated he was broke, and the bankruptcy court ordered that his personal case should proceed in the District of New Jersey.

Affiliate dismissals. The plan contemplated the dismissal of certain affiliate chapter 11 cases post-confirmation as properties were sold or refinanced.

Contested Matters

The case generated contested matters related to claims and financing.

Silber claims objection. The debtors filed objections to proofs of claim filed by Moshe Mark Silber. On September 17, 2025, the Court entered an order sustaining the objection to proofs of claim Nos. 216, 229, and 230, disallowing those claims.

Lender objections. Various prepetition lenders filed objections to the DIP financing and plan confirmation:

The plan was confirmed.

Venue consolidation. A motion was filed seeking to transfer Silber's chapter 7 case to the District of New Jersey. On October 30, 2025, the Court ordered that Silber's personal bankruptcy case should proceed in New Jersey.

Trust implementation issues. As of December 2025, the Creditor Recovery Trust Trustee requested a conference regarding implementation issues with the confirmed plan.

Affiliate Case Dismissals

The CBRM bankruptcy encompassed numerous affiliated entities, many of which were dismissed following the plan confirmation:

Some CBRM affiliates' chapter 11 cases were dismissed as the restructuring wound down.

Portfolio Disposition Beyond CBRM

The CBRM bankruptcy was part of a broader set of transactions involving Silber-related properties.

Broader auction. A creditor with control of roughly 6,300 multifamily units once associated with Silber planned to auction the portfolio in 2025.

NOLA portfolio sale. In October 2025, the Lynd Group agreed to acquire Silber's 1,500-unit New Orleans portfolio.

Bondholder losses. Bondholders were searching for approximately $200 million owed to them.

Key Timeline

Professional Retentions

White & Case LLP filed its Final Fee Application in December 2025 for the period from petition date through October 2025. Kenneth Alan Rosen's fee application was approved in November 2025 with reduced fees awarded of $51,675.

Frequently Asked Questions

What was Moshe Silber's fraud scheme?

Silber, along with co-conspirators Fredrick Schulman and Chaim Puretz, acquired the Williamsburg of Cincinnati property for $70 million but fraudulently represented the purchase price as $95.85 million. They accomplished this by conducting two separate closings on the same day—one reflecting the actual price and another reflecting the inflated price. Using a stolen identity and forged documents, they obtained a $74.25 million loan from Fannie Mae. The total fraud exceeded $119 million across multiple transactions.

What was Silber's criminal sentence?

Silber was sentenced to 30 months in federal prison after pleading guilty to conspiracy to commit wire fraud affecting a financial institution on July 9, 2024. He was released to a halfway house in New York in December 2025.

What were the conditions at the properties?

District Attorney Stephen Zappala documented conditions at Mon View Heights including a 74% unit failure rate, missing windows, collapsed ceilings, open sewage, raw sewage running into streets, and infestations of raccoons, skunks, bedbugs, roaches, and mold. State charges alleged that Silber and Schulman diverted over $580,000 in HUD funds earmarked for the complex and other subsidized housing projects.

How was the Kelly Hamilton sale structured?

The 110-unit Pittsburgh property was sold to stalking horse bidder 3650 SS1 Pittsburgh LLC (an affiliate of the property manager) through a credit bid of the DIP obligations. No competing bids emerged, and the transaction closed following plan confirmation, securing new capital for rehabilitation.

What is the Creditor Recovery Trust?

The plan established a litigation trust funded with over $1.4 million to pursue claims against Moshe Silber and other insiders. The trust is investigating fraud, breach of fiduciary duty, conversion, and diversion of funds. An independent trustee was appointed to manage the litigation, which continues as of the most recent filings.

Why were the DIP interest rates so high?

Both DIP facilities carried rates of 16% for Kelly Hamilton and 18% for NOLA.

Were Silber's claims against the estate allowed?

No. The Court sustained objections to Silber's proofs of claim (Nos. 216, 229, 230), disallowing those claims.

What happened to the other Silber properties?

A creditor controlling approximately 6,300 units associated with Silber auctioned the portfolio. The Lynd Group acquired the 1,500-unit New Orleans portfolio in October 2025. Multiple affiliated debtor cases were dismissed as properties were sold or refinanced.

Did Silber file personal bankruptcy?

Yes. Silber filed for personal chapter 7 bankruptcy in September 2025, claiming he was broke. The Court ordered that his personal case should proceed in the District of New Jersey.

What is the current status of the case?

The plan was confirmed September 4-5, 2025, with Kelly Hamilton sold to the stalking horse bidder and the Creditor Recovery Trust established to pursue claims against Silber. As of December 2025, the Trust Trustee requested a conference regarding implementation issues, and affiliate case dismissals continued.

Who is the claims agent for CBRM Realty?

Omni Agent Solutions serves as the claims and noticing agent for the CBRM Realty bankruptcy. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

For more chapter 11 case coverage, visit the ElevenFlo bankruptcy blog.