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Real Estate Agent Sentenced for Wire Fraud
PHILADELPHIA – In a shocking turn of events, 47-year-old Jonathan Barach, a licensed residential real estate agent and co-founder of The Barach Group, LLC, was sentenced to 37 months in prison for his involvement in a lengthy fraudulent loan scheme.
According to the investigation, between July 2017 and April 2021, Barach used his real estate firm to solicit and raise approximately $3.1 million from 19 individuals and businesses for purported short-term real estate investments in Philadelphia. However, there were no real estate projects, and Barach knew the newly raised capital would be used for his own purposes and debts.
As part of his scheme, Barach raised funds through a series of material misrepresentations, including falsely stating that the money would be used to provide bridge loans to builders and contractors looking to purchase and flip distressed real estate properties or to complete renovation projects. Instead, Barach transferred victim funds to his personal bank accounts, withdrew large sums of cash, made assorted personal expenditures, and made five- and six-figure deposits at casinos and sportsbook operations.
Barach manipulated and victimized people he knew personally, and many victims trusted him with their retirement accounts, children’s educational funds, and life savings. Although he paid back some of his earlier lenders with a portion of the funding secured from later lenders, over $1.49 million of the fraudulently obtained loan proceeds remain unpaid.
The case was investigated by the FDIC Office of Inspector General, IRS Criminal Investigation, and the FBI, with assistance from the U.S. Secret Service. Assistant United States Attorneys Terri Marinari and Samuel Dalke prosecuted the case.
On [sentencing date], United States District Judge Mia Roberts Perez sentenced Barach to 37 months’ imprisonment and two years of supervised release. The Court also ordered Barach to pay a forfeiture judgment of $1,496,928.99, victim restitution in the amount of $1,496,928.99, and a $200 special assessment.
The victims of Barach’s crimes described the enduring financial, emotional, and mental impact that his theft had on themselves and their families. Barach pleaded guilty in September to one count of wire fraud and one count of making an illegal monetary transaction.
Key Facts
- State: Pennsylvania
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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