Crown Capital Holdings: $119M Fraud Conviction Triggers 10,000-Unit Affordable Housing Collapse

Crown Capital Holdings LLC filed for chapter 11 protection in May 2025. The affordable housing portfolio—comprising approximately 10,000 units across eight states—faced pressure from criminal proceedings involving its founder and near-term debt maturities. Court filings state that prepetition efforts to refinance and restructure capital were "severely impaired by the prosecution of Mark Silber and the nature of the allegations against him." Silber, the managing partner of Rhodium Capital Advisors, pleaded guilty to a $119 million mortgage fraud conspiracy in July 2024 and was subsequently sentenced to 30 months in federal prison. The filing came after the fraud conviction, with approximately $200 million in unsecured notes with near-term maturities and property conditions described by tenants as "no human being should live in."

Through CBRM Realty Inc., the company holds equity interests in approximately four dozen low-income housing projects collectively comprising upwards of 10,000 affordable housing units across Pennsylvania, Michigan, Ohio, Illinois, Alabama, Louisiana, Virginia, and other states. The case includes rolling dismissals as individual property-level entities transfer to secured lenders, ongoing litigation from creditors challenging corporate authority and property ownership, and municipal governments seeking relief from stay to address code enforcement issues. Nexus DIP Financing LLC provides $21.9 million at 18% interest to fund property rehabilitation and operations.

Company Background: Affordable Housing Portfolio

Crown Capital Holdings LLC operates as a real estate investment and management company focused on affordable housing and multi-family residential properties. The company's structure traces back to Rhodium Capital Advisors, which at its peak owned more than 10,000 apartments nationwide worth more than $1 billion. Through CBRM Realty Inc. and its wholly owned subsidiary Crown Capital Holdings LLC, the enterprise holds equity interests in approximately four dozen low-income housing projects throughout the United States. The portfolio focuses on affordable housing apartments, multi-family residential properties, property rehabilitation and management, and senior living facilities.

The Crown Capital structure relies on dozens of single-purpose entities (SPEs) to hold individual properties. This approach—standard in real estate investment—creates ring-fenced liability at the property level but also introduces administrative complexity in bankruptcy. The SPE structure became particularly relevant as the chapter 11 cases progressed, allowing for selective dismissals of individual debtor entities as properties transferred to secured lenders or were restructured outside the bankruptcy process. Debtor entities include Alta Sita Apts LLC, Bellefield Dwellings Apts LLC, Campus Heights Apt Owner LLC, Carriage House Apts LLC, Country Club Manor Apts LLC, Creekwood Apartments LLC, Evergreen Regency Townhomes Ltd., Forrester Apartments LLC, Gallatin Apts LLC, Geneva House Apts LLC, Green Meadow Apts LLC, Homewood House Apts LLC, Lucas Urban Holdings LLC, Mon View Apts LLC, Palisades Apts LLC, Slidell Apartments LLC, Sycamore Meadows Apartments Ltd., Valley Royal Court Apts LLC, and Woodside Village Owner LLC, among others.

Geographic distribution. The portfolio spans eight states with concentrations in Pennsylvania and Michigan. Pennsylvania properties include Bellefield Dwellings and Homewood House in Pittsburgh, Mon View Apts in West Mifflin, Palisades Apts in Rankin, Valley Royal Court in New Kensington, Gallatin Apts in Uniontown, and Geneva House in Scranton. Michigan holdings encompass Sycamore Meadows in Ypsilanti and multiple Flint-area properties including Evergreen Regency Townhomes, Country Club Manor, and Slidell Apartments. Ohio properties include Campus Heights in Athens and Lucas Urban Holdings in Toledo. Illinois properties include Alta Sita Apts in East St. Louis and Green Meadow Apts in Danville. The portfolio extends to Creekwood and Forrester Apartments in Tuscaloosa, Alabama; Carriage House Apts in New Orleans, Louisiana; and Woodside Village Owner in Danville, Virginia.

The Mark Silber Fraud Case

Public records and court filings describe criminal proceedings involving founder Moshe "Mark" Silber. Court filings state that prepetition efforts to refinance and restructure capital were "severely impaired by the prosecution of Mark Silber and the nature of the allegations against him."

The $119 Million Conspiracy.

The Department of Justice announced in 2024 that three real estate investors pleaded guilty to conspiracy to fraudulently obtain $74 million and $45 million loans, totaling $119 million in fraudulent financing. Silber was the managing partner of Rhodium Capital Advisors, a New York-based real estate investment firm focusing on affordable housing. The scheme centered on the Williamsburg of Cincinnati apartment complex.

In March 2019, the conspirators acquired Williamsburg of Cincinnati for $70 million. However, they utilized a stolen identity to present the lender and Fannie Mae with a purchase and sale contract showing $95.85 million—nearly $26 million above the true purchase price. Two closings were performed: one for the true $70 million sales price and another for the fraudulent $95.85 million price. Based on false statements, the lender and Fannie Mae funded a loan of $74.25 million. The fraud scheme resulted in JLL claiming losses of $18 million.

Criminal Sentencing.

The co-conspirators received the following sentences:

Silber pleaded guilty on July 9, 2024 to one count of conspiracy to commit wire fraud affecting a financial institution. He was sentenced in March 2025 to 30 months in federal prison. By December 2025, Silber had been released from prison and moved to a halfway house in New York, having served approximately nine months.

Real Estate Ban.

The criminal proceedings resulted in bans on Silber and Schulman's future real estate activities. Silber is prohibited from participating in managing, financing, renovation, or sale of any property and is banned from raising capital or seeking to obtain financing from any business entity. Schulman is forbidden from participating in any real estate business.

Additional Pennsylvania State Charges.

The federal fraud conviction was not the only legal exposure facing Silber. In February 2025, the Allegheny County District Attorney's Office charged Silber, Schulman, and Jonathan Liani with multiple felony charges related to the Mon View Heights housing complex outside Pittsburgh and at least eleven other properties described as "nuisance properties." Detectives found that $580,000 that could have been used for improvements at Mon View Apartments was diverted to third-party companies controlled by Silber. The charges allege diversion of HUD funds intended for property maintenance and improvement. Silber and Schulman surrendered to authorities following the filing of these charges.

Property Condition Issues

Multiple properties in the portfolio faced public nuisance declarations, code enforcement actions, and tenant complaints about property conditions.

Williamsburg of Cincinnati. In January 2023, the City of Cincinnati sued after more than 1,000 tenants reported flooding, lack of heat, and rodent infestations. The public nuisance lawsuit was combined with a foreclosure case filed by Fannie Mae. Cincinnati Mayor Aftab Pureval stated that the Williamsburg complex had "conditions that no human being should live in." In June, a Hamilton County judge ruled to establish new management, and Newmark took over control of the property.

Mon View Heights. The Pittsburgh-area property that formed the basis for Pennsylvania state criminal charges faced testimony describing deteriorating conditions at preliminary hearings. Prosecutors characterized Mon View Heights and related properties as "nuisance properties."

Jackson, Mississippi. A Jackson Municipal Court judge declared a property owned by Crown Capital Holdings LLC a public nuisance and recommended a $1,000 fine. The declaration came weeks after residents reported that trash had not been picked up for weeks. The ruling occurred while Silber faced his 30-month federal prison sentence.

Fannie Mae foreclosures. Beyond the Cincinnati property, Fannie Mae foreclosed on additional properties associated with Silber following his fraud conviction.

Refinancing Challenges

Court filings state that prepetition efforts to refinance and restructure capital were "severely impaired by the prosecution of Mark Silber and the nature of the allegations against him."

Lender confidence. Court filings describe the prosecution as impairing the company's ability to refinance and restructure.

Note maturities. The portfolio carried approximately $200 million in unsecured notes with near-term maturities in 2025 and 2027.

Property-level distress. Individual properties were experiencing liquidity issues and requiring capital investment for deferred maintenance.

Lender enforcement. Multiple secured lenders began seeking relief from stay and property control as the bankruptcy progressed.

Capital Structure

Crown Capital's capital structure combined portfolio-level unsecured debt with property-specific mortgage financing.

Unsecured Notes (~$200 Million).

The portfolio-level unsecured notes include the following:

The portfolio includes 8.00% and 12.50% notes due 2025 and 6.75% notes due 2027.

Property-Level Mortgage Loans.

Individual properties carried secured debt from multiple lenders:

Chapter 11 Proceedings

The Crown Capital chapter 11 cases evolved in phases, with multiple debtor entities filing at different times and joint administration creating a unified proceeding to address the fragmented portfolio structure.

Filing and Joint Administration.

The initial debtors filed chapter 11 petitions on May 19-20, 2025, in the U.S. Bankruptcy Court for the District of New Jersey. Additional initial debtors filed on August 17, 2025. On September 4, 2025, the CBRM Plan was confirmed, facilitating the sale of the 110-unit Kelly Hamilton affordable housing complex in Pittsburgh, Pennsylvania to a stalking horse bidder. Additional debtors filed on October 6, 2025, accompanied by the DIP Financing Motion. The court entered a Joint Administration Order on October 10, 2025, consolidating the cases for administrative purposes under lead case number 25-15351.

The chapter 11 filing was structured to permit the company to obtain financing to facilitate rehabilitation of affordable housing assets in Louisiana and Pennsylvania and to establish a creditor recovery vehicle to pursue claims against certain insiders.

DIP Financing.

Nexus DIP Financing LLC provided financing to fund operations and property rehabilitation during the chapter 11 process:

Uses of proceeds. The DIP facility allocates approximately $5.34 million for capital expenditures across 19 properties and approximately $2.73 million for operational expenditures. Additional proceeds fund professional fees and debt service per the approved budget.

DIP order progression. The Interim Cash Management Order was entered on October 20, 2025. A property-specific Lucas Urban DIP Order followed on October 31, 2025, reflecting the need for tailored financing arrangements across the portfolio.

CBRM Plan Confirmation.

The CBRM Plan was confirmed on September 4, 2025. The plan facilitated the sale of the Kelly Hamilton affordable housing complex—a 110-unit property in Pittsburgh—to a stalking horse bidder.

The CBRM Plan also encompassed an agreement to sell four properties in New Orleans, Louisiana.

Rolling Dismissals

The Crown Capital chapter 11 cases include dismissal of individual debtor entities as properties transfer to secured lenders or are resolved outside the bankruptcy process.

The Merchants Debtors dismissal on October 30, 2025, transferred multiple properties financed by Merchants Bank of Indiana out of the bankruptcy. Country Club Manor and Geneva House followed on October 31, 2025. Bellefield Dwellings—secured by Capital Funding, LLC—was dismissed on November 10, 2025. Additional debtors were dismissed on November 24, 2025.

The debtors filed motions to dismiss certain cases.

Contested Matters

Despite the rolling dismissals, the Crown Capital cases feature contested litigation reflecting disputes over property ownership, corporate authority, and the treatment of individual properties.

Capital Funding disputes. Capital Funding, LLC—the lender secured by Bellefield Dwellings—filed a Motion to Dismiss for Cause, challenging the debtors' right to remain in chapter 11. The lender also filed a Corporate Authority Motion seeking abstention, arguing that the bankruptcy court should decline jurisdiction over disputed property issues. Capital Funding filed a Motion for Relief from Stay covering the Ashland Property and Campus Property, seeking permission to exercise remedies outside bankruptcy.

Fannie Mae estate dispute. Fannie Mae filed a Motion for Determination that Sycamore Apartments Are Not Property of the Estate on October 22, 2025. Sycamore Meadows carries the largest outstanding mortgage in the portfolio at $36.9 million. The motion challenges whether the debtors hold proper ownership or control over the property.

City of Pittsburgh involvement. The City of Pittsburgh filed a Motion for Relief from Stay on November 13, 2025, seeking permission to pursue code enforcement actions against various Pittsburgh properties.

Professional Retentions

The Crown Capital cases include the following professional retentions:

White & Case LLP serves as lead counsel. The team includes real estate partner David Viklund. Cole Schotz P.C. provides New Jersey co-counsel services and has a financial institution-neutral practice. Omni Agent Solutions, founded in 1970, handles claims and noticing.

Faegre Drinker represents the Ad Hoc Group of Noteholders.

Industry Context: Affordable Housing Distress

The case occurred amid broader distress in real estate and multi-family housing sectors.

Multi-family distress metrics. At the end of the third quarter of 2024, more than $14.2 billion in apartment value was classified as distressed according to MSCI data. This represented a net decrease of $124 million from the second quarter.

Real estate bankruptcy activity. In 2024, there were 187 chapter 11 filings in the real estate sector, accounting for 35% of total filings according to PwC analysis. Over the four years since 2020, real estate's share of chapter 11 activity averaged 32%—compared to just 18% during the four years preceding 2020.

Foreclosure trends. Foreclosure filings in the first half of 2025 reached 187,659—up 5.8% from the first half of 2024. By September 2025, foreclosure filings had surged nearly 20% year-over-year, with the United States on track to surpass the 322,000 properties that went into foreclosure in 2024.

Affordable housing specifically. Valdesia Gardens, a Bronx affordable housing complex, filed for chapter 11 protection with $22.6 million in debt.

Key Timeline

Frequently Asked Questions

What is Crown Capital Holdings?

Crown Capital Holdings LLC is a real estate investment and management company focused on affordable housing. Through CBRM Realty Inc., it holds equity interests in approximately four dozen low-income housing projects comprising upwards of 10,000 affordable housing units across Pennsylvania, Michigan, Ohio, Illinois, Alabama, Louisiana, Virginia, and other states.

What was the Mark Silber fraud case?

Founder Mark Silber and associates pleaded guilty to a $119 million mortgage fraud conspiracy. The scheme centered on the Williamsburg of Cincinnati apartment complex, where conspirators used a stolen identity to inflate the purchase price from $70 million to $95.85 million, fraudulently obtaining a $74.25 million loan from Fannie Mae and lenders.

How did the fraud conviction affect the bankruptcy?

Court filings state that prepetition refinancing efforts were "severely impaired by the prosecution of Mark Silber and the nature of the allegations against him." The portfolio had approximately $200 million in unsecured notes with near-term maturities.

What sentences did the fraud conspirators receive?

Silber received 30 months in prison. Frederick Schulman received 12 months plus 9 months home confinement. Aron Puretz received 60 months plus $22.2 million in restitution. Chaim Puretz received 24 months plus $20.3 million in restitution.

What is the DIP financing structure?

Nexus DIP Financing LLC provided $21.9 million at 18% interest (12% cash plus 6% PIK). Proceeds fund approximately $5.3 million in capital expenditures and $2.7 million in operational expenditures across 19 properties, plus professional fees and debt service.

Why are individual debtor entities being dismissed?

The Crown Capital structure uses single-purpose entities to hold individual properties. The debtors have agreed to dismiss certain entities, allowing properties to transfer to lenders outside bankruptcy.

What is Fannie Mae's role in the case?

Fannie Mae filed a motion challenging whether the debtors own Sycamore Meadows Apartments—the property with the largest mortgage at $36.9 million. Fannie Mae also foreclosed on other properties associated with Silber following his fraud conviction.

What were property conditions like across the portfolio?

Multiple properties faced public nuisance declarations. At Williamsburg of Cincinnati, more than 1,000 tenants reported flooding, lack of heat, and rodent infestations—conditions the mayor described as "no human being should live in." A Jackson, Mississippi property was declared a nuisance after trash went uncollected for weeks.

Is Mark Silber still incarcerated?

As of December 2025, Silber was released from prison and moved to a halfway house in New York, having served approximately nine months of his 30-month sentence. He remains under Bureau of Prisons supervision and is permanently banned from real estate activities.

What additional criminal charges does Silber face?

In February 2025, Allegheny County, Pennsylvania, charged Silber with diverting $580,000 in HUD funds from Mon View Heights and eleven other "nuisance properties." These state charges remain pending and are separate from the federal fraud conviction.

Who is the claims agent for Crown Capital Holdings?

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

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