Fraud Fallout! Four Real Estate Investors Sentenced in Explosive $100M Loan Scheme

Luxury, Lies, and Loan Fraud — How Two Commercial Deals Turned into Federal Prison Time

Four real estate investors thought they had it all figured out to get away with fleecing others.

Could this happen to you?

Read on to learn the red flags and survival strategies before your next investment move.

Bold Deception: High-Profile Investors Sentenced for Orchestrating Two Major Loan Frauds

In a case that sent shockwaves through the commercial real estate world, four high-profile investors from New Jersey and New York have been sentenced in connection with a pair of multimillion-dollar fraud schemes involving falsified documents, inflated property prices, stolen identities, and more than $100 million in fraudulent transactions.

The Justice Department, along with multiple federal agencies, announced on April 1, 2025, that these elaborate scams targeted major lenders and even Fannie Mae itself.

The schemes, executed between 2019 and 2020, revolved around falsified property sales and phony closings designed to siphon millions in inflated loans—funds that were never legally owed.

These operations offer a stark warning to anyone navigating high-value commercial or multifamily real estate deals.

Operation 1: The $70M Flip That Was Never Real

Defendants: Aron Puretz, 53, and his son Chaim “Eli” Puretz, 29, both of New Jersey.

In September 2020, the Puretz duo purchased Troy Technology Park in Troy, Michigan, for $42 million. But rather than a simple transaction, they turned the deal into a carefully choreographed act of deception.

Here’s how:

• They falsely claimed to flip the property to a co-conspirator for $70 million—an inflated figure fabricated to mislead the lender
• Fake short-term loan documents were submitted to make it appear the buyer had real capital
• They orchestrated two simultaneous closings at a New Jersey title company: one with the real purchase price and another with the fake $70 million “sale”
• Based on these lies, they secured a $45 million loan under fraudulent terms

Sentencing:

• Aron Puretz: 60 months in prison, $22,235,457 restitution
• Eli Puretz: 24 months in prison, $20,315,457 restitution

Operation 2: The $95M Illusion Using a Stolen Identity

Defendants: Moshe “Mark” Silber, 34, and Fredrick Schulman, 72, both of New York.

These men were managing members of Rhodium Capital Advisors, which in March 2019 acquired the Williamsburg of Cincinnati, a large apartment complex in Ohio, for $70 million.

But instead of reporting the real purchase price:

• They presented a fraudulent contract listing a $95 million sale price—inflating the asset’s value by $25 million
• Even more disturbingly, they used a stolen identity in the paperwork submitted to both the lender and Fannie Mae
• As with the Troy deal, two closings were performed—one real, one fake—to support the fraudulent narrative

Sentencing:

• Moshe “Mark” Silber: 30 months in prison (restitution pending)
• Fredrick Schulman: 12 months and 1 day in prison, followed by 9 months home confinement (restitution pending)

The Agencies Behind the Hammer

This joint investigation was led by:

• The Department of Justice’s Criminal Division
• The U.S. Attorney’s Office for the District of New Jersey
• The Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG)
• The U.S. Postal Inspection Service
• The Department of Housing and Urban Development – OIG (HUD-OIG)

Prosecutors Siji Moore and Martha Nye delivered the final blow in court.

How to Avoid Getting Caught in or Falling for a Similar Scheme

Real estate fraud isn’t always this dramatic, but it’s increasingly common in high-stakes transactions.

Here’s how you can protect yourself and your investments:

Investor Survival Guide: Red Flags and Reality Checks

• Verify All Transaction Documents – Always cross-reference title reports, sales contracts, and financial disclosures. Be especially wary of simultaneous or back-to-back closings
• Demand Independent Appraisals – Never rely solely on appraisals provided by the other party. Secure your own third-party evaluation to validate property value
• Scrutinize Funding Sources – If “bridge” or short-term loans appear out of nowhere, ask who’s providing the funds and why they’re needed
• Watch for Identity Red Flags – Verify all signatories and participants through multiple methods, especially in syndications or high-value commercial deals
• Know Your Title Company – Ensure the closing agents and title company have a solid reputation and are operating transparently
• Fannie Mae & Lender Protections – If Fannie Mae is involved, understand their risk policies and be cautious of sellers who manipulate loan terms or rush documentation