A new layered transition metal oxohalide, FeTe2O5ClxBr1-x, has been identified. It crystallizes in the monoclinic space group P2(1)/c. The unit cell for FeTe2O5Br is a = 13.3964(8), b = 6.5966(4), c = 14.2897(6) angstrom beta = 108.118(6)degrees, and Z = 8. The layers are built of edge sharing [FeO6] octahedra forming [Fe4O16](20-) units that are linked by [Te4O10X2](6-) groups. The layers have no net charge and are only weakly connected via van der Waals forces to adjacent layers. There are four crystallographically different Te atoms, and one of them displays a unique [TeO2X] coordination polyhedron (X = Cl, Br). Magnetic susceptibility measurements show a broad maximum typical for 4-spin clusters of coupled Fe(III) ions in the high-spin state. Evidence for magnetic instabilities exists at low temperatures, which have been confirmed with specific heat experiments. A theoretical modeling of the susceptibility concludes a frustration of the intra-tetramer anti-ferromagnetic exchange interaction.