Four real estate investors were sentenced in a multi-year conspiracy to fraudulently obtain multimillion-dollar loans on commercial and multifamily properties.
Aron Puretz, 53, of New Jersey, and his son, Chaim ‘Eli’ Puretz, 29, of New Jersey, were sentenced to prison for conspiracy to commit wire fraud affecting a financial institution.
Aron Puretz was sentenced to 60 months in prison and ordered to pay $22,235,457 in restitution, and Eli Puretz was sentenced to 24 months in prison and ordered to pay $20,315,457 in restitution.
Moshe ‘Mark’ Silber, 34, of New York, and Fredrick Schulman, 72, of New York, were also sentenced to terms of imprisonment for their respective roles in a conspiracy to commit wire fraud affecting a financial institution.
Silber was sentenced to 30 months in prison, and Schulman was sentenced to 12 months and a day in prison, to be followed by nine months of home confinement.
The scheme involved falsified documents, including inflated purchase prices, to obtain loans for commercial and multifamily properties.
According to court documents, Aron and Eli Puretz were owners of a commercial property, Troy Technology Park, in Troy, Michigan. In September 2020, Aron and Eli Puretz purchased Troy Technology Park for approximately $42 million, before selling or flipping the property to a co-conspirator for approximately $70 million.
The conspirators provided the lender with falsified documents that included the inflated purchase price. Based on the fraudulent documents, the lender funded a loan for $45 million.
As for Silber and Schulman, they were managing members of Rhodium Capital Advisors, an entity that was involved in the acquisition and management of Williamsburg of Cincinnati, a large apartment complex in Cincinnati, Ohio.
In March 2019, Williamsburg of Cincinnati was acquired for $70 million. However, Silber, Schulman, and other co-conspirators utilized a stolen identity to present a lender and Fannie Mae with a fraudulent purchase-and-sale contract for over $95 million and other fraudulent documents.
On March 8, 2019, two closings were performed, one for the true $70 million sales price and another for the fraudulent over $95 million sales price presented to the lenders.
Based on the co-conspirators’ false statements, the lender and Fannie Mae funded a loan in excess of $74 million for the purchase of Williamsburg of Cincinnati.
The U.S. government has brought multiple charges against those involved.
According to the indictment, the scheme was carried out by Aron Puretz, Eli Puretz, Silber, and Schulman, among others.
The charges include conspiracy to commit wire fraud affecting a financial institution.
Aron Puretz and Eli Puretz were both found guilty of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison.
Aron Puretz was sentenced to 60 months in prison and ordered to pay $22,235,457 in restitution, and Eli Puretz was sentenced to 24 months in prison and ordered to pay $20,315,457 in restitution.
Silber was sentenced to 30 months in prison, and Schulman was sentenced to 12 months and a day in prison, to be followed by nine months of home confinement.
The government has also charged multiple individuals with conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison.
Aron Puretz and Eli Puretz are currently serving their sentences.
Silber and Schulman are also serving their sentences.
The government has brought multiple charges against those involved.
Aron Puretz and Eli Puretz were both found guilty of conspiracy to commit wire fraud affecting a financial institution.
The charges include conspiracy to commit wire fraud affecting a financial institution.
According to the indictment, the scheme was carried out by Aron Puretz, Eli Puretz, Silber, and Schulman, among others.
The conspirators provided the lender with falsified documents that included the inflated purchase price.
Based on the fraudulent documents, the lender funded a loan for $45 million.
On March 8, 2019, two closings were performed, one for the true $70 million sales price and another for the fraudulent over $95 million sales price presented to the lenders.
Based on the co-conspirators’ false statements, the lender and Fannie Mae funded a loan in excess of $74 million for the purchase of Williamsburg of Cincinnati.
Aron Puretz and Eli Puretz were both found guilty of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison.
Aron Puretz was sentenced to 60 months in prison and ordered to pay $22,235,457 in restitution, and Eli Puretz was sentenced to 24 months in prison and ordered to pay $20,315,457 in restitution.
Silber was sentenced to 30 months in prison, and Schulman was sentenced to 12 months and a day in prison, to be followed by nine months of home confinement.
The government has also charged multiple individuals with conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison.
Aron Puretz and Eli Puretz are currently serving their sentences.
Silber and Schulman are also serving their sentences.
The U.S. government has brought multiple charges against those involved.
According to the indictment, the scheme was carried out by Aron Puretz, Eli Puretz, Silber, and Schulman, among others.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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