Livingston Man Pleads Guilty in Multi-Million Dollar Fraud Scheme

An Essex County man admitted his role today in a fraudulent real estate investment scheme that defrauded victims out of $4 million, according to court records.

Abbe Edelman, 50, of Livingston, pleaded guilty to an information charging him with wire fraud in Newark federal court. U.S. District Judge Susan Wigenton presided over the case.

Edelman swindled the money from the victim investors through several companies alleged to be in the business of buying and selling real estate, according to court documents. He told the investors that he had significant past history in real estate, long-standing relationships with banks, allowing for below market prices to foreclosed properties, links to celebrity backers and an MBA from New York University, among numerous other false promises, the court documents said.

In reality, Edelman had none of those things.

The bilked money went to bankroll his extravagant lifestyle. According to court documents, Edelman allegedly used the money for his home mortgage and daily living expenses, including restaurant, telephone and gas bills, merchandise from retailers, such as Gucci and Neiman Marcus, repaid existing investors in ponzi-scheme fashion and paid his legal expenses in connection with victims seeking repayment of their investment.

Edelman pleaded guilty to wire fraud, which carries a maximum potential penalty of 20 years in prison and $250,000 fine. His sentencing hearing is scheduled for March 23, 2015.