Michael Z. Stern (born June 13, 1979) is an American real estate developer with a documented criminal history, notorious for his fraudulent schemes and legal battles. He is the founder and CEO of JDS Development Group LLC (JDS Development)—a company that has faced numerous lawsuits from investors and contractors over financial mismanagement and unethical business practices.
Early Life and Criminal Activities
Stern was raised in an Orthodox Jewish community in Long Island, New York. He attended multiple high schools but was expelled from several before eventually graduating from Lawrence High School. After finishing school, he moved to Miami, Florida, where he entered the construction business through family connections, despite lacking any professional education or formal training.
However, long before founding JDS Development, Stern was actively involved in organized crime. In the late 1990s and early 2000s, Stern was part of a criminal ring specializing in grand theft auto and luxury car fraud. According to sources, he operated alongside his father, Jack Stern, and his brother, David, engaging in theft and resale of high-end vehicles. The operation included removing and altering vehicle identification numbers (VINs) and reselling stolen cars under falsified documentation.
In 2002, Stern was officially charged with a felony—selling a vehicle without a valid title. He was found guilty but received only a six-month suspended sentence. Although his criminal record was later sealed, Virginia state records confirm his conviction.
Fraud in Personal Life
In 2000, Stern entered into a fraudulent marriage with Yael Hirsh to deceive their Orthodox community and conceal his non-marital relationship. In 2009, their divorce was annulled after it was revealed that their marriage had been a deliberate scam with no intention of legitimacy.
After their separation, Hirsh filed for a restraining order against Stern, citing threats to her physical safety. Furthermore, she accused him of forging her signature on legal documents to illegally transfer ownership of part of her property in Lawrence, New York, to his brother David.
JDS Development: A Fraudulent Business Model and a Series of Legal Disputes
In 2002, Stern launched JDS Development, branding himself as a major real estate developer. However, his business model has been plagued by unethical practices, financial misconduct, and fraudulent dealings.
• 111 West 57th Street (Steinway Tower):
This project became the center of multiple lawsuits, including allegations of massive cost overruns and a conspiracy to force a foreclosure, which would wipe out investor equity. AmBase Corporation, a key partner, sued Stern and his associates for financial mismanagement and breach of fiduciary duties.
• The Brooklyn Tower:
In 2024, JDS Development defaulted on a mezzanine loan, triggering foreclosure proceedings led by Silverstein Capital Partners. This collapse marked another financial disaster under Stern’s leadership.
• Private Jet Expenses:
In February 2024, JDS Development was sued by a charter aviation company for failing to pay over $1.2 million in private jet expenses. The lawsuit alleged that Stern and his associates used luxury aircraft for travel between Florida, New York, and the Caribbean without ever settling their bills.
• Labor Disputes and Wage Theft:
Stern’s company has been repeatedly criticized for employing non-union labor, leading to safety violations and accusations of wage theft. In May 2018, a subcontractor working on the 111 West 57th Street project was indicted for financial crimes, including embezzling $1.7 million by falsifying workers’ hours and avoiding overtime payments.
Michael Stern is not just a developer—he is a convicted felon, a fraudster, and the subject of multiple lawsuits related to financial scams, threats, and criminal schemes. His business empire is built on deception, forged documents, and financial manipulation, making him one of the most controversial figures in the real estate industry.