⏱ 2 min read
Jacob Rappaport, a 41-year-old attorney from Towson, Maryland, orchestrated a real estate bank fraud scheme that involved fake contracts and hidden side agreements. The scheme, which took place in Baltimore, involved Rappaport’s client, Alexander Schultz, and his company, Limitless Management. In January 2020, Schultz’s company, Coventry Realty, LLC, purchased a Baltimore apartment complex, Coventry Manor, for $5.5 million. Later, in March 2021, Coventry Realty, LLC obtained a new loan from Bank B for approximately $6.2 million for Coventry Manor.
Rappaport, acting on behalf of Limitless Management, prepared two separate contracts for sale when Coventry Manor was sold to Buyer #1 in December 2021. The first contract given to Bank B reflected a purchase price of $7.8 million, while a side agreement listed the true purchasing price as approximately $6.9 million, with Coventry Realty providing approximately $847,619.05 in “seller credits” to account for the difference.
The scheme was uncovered, and Rappaport was sentenced to 15 months in prison for conspiracy to commit bank fraud. The sentence was announced by U.S. Attorney for the District of Maryland, Kelly O. Hayes, along with the FBI, FDIC-OIG, and FHFA-OIG.
The case highlights the importance of transparency and honesty in real estate transactions, and the consequences of attempting to deceive financial institutions. Rappaport’s actions not only damaged the reputation of the legal profession but also put the financial stability of the community at risk.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Maryland
- Location: MD
- Source: DOJ Press Release
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