A Pittsburgh businessman was sentenced to 33 months in prison for defrauding foreign nationals, mostly of Israeli descent, out of $1.4 million in a real estate investment scheme.
Golan Barak, 50, of Pittsburgh, PA, was sentenced by Senior United States District Judge Donetta W. Ambrose on charges of wire fraud. The scheme spanned between 2013 and 2016.
According to the information presented to the court, Barak falsely induced foreign nationals to invest with him in real estate in Pittsburgh, but instead of using the money for the intended purpose, he fraudulently dissipated it for personal and business expenses, or to buy other properties, or to pay other investors.
Barak defrauded two Israeli investors out of approximately $1,400,000 connected with the purchase of 12 pieces of real estate throughout the Pittsburgh area. The purchase money was used instead by Barak to purchase other properties, or for Barak’s expenses in his management company called Ergo Management.
The case was prosecuted by Assistant United States Attorney Gregory C. Melucci on behalf of the government. Acting U.S. Attorney Soo C. Song commended the FBI for the investigation that led to the successful prosecution of Golan Barak.
Golan Barak’s sentence includes 33 months of incarceration and 3 years of supervised release.
The case serves as a reminder of the importance of conducting thorough investigations into financial schemes and holding individuals accountable for their actions.
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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