A Philadelphia real estate agent has pleaded guilty to charges related to a fraudulent loan scheme that defrauded individuals and businesses out of millions of dollars. Jonathan Barach, 46, entered his plea before United States District Judge Mia Roberts Perez, admitting to one count of wire fraud and one count of making an illegal monetary transaction.
According to information filed by federal prosecutors, Barach was a licensed residential real estate agent and co-founder of The Barach Group, LLC. He also established TBG Real Estate, LLC in Philadelphia. In addition to traditional real estate services, he used these companies to solicit funds for supposed short-term real estate financing opportunities.
From July 2017 through April 2021, Barach raised over $3 million from lenders. Prosecutors say he misrepresented the purpose of these funds, claiming they would be used as bridge loans for builders and contractors involved in distressed property purchases or renovation projects. In reality, no such projects existed and his entities did not provide any real estate financing.
Authorities allege that instead of using the money as promised, Barach withdrew large sums in cash for personal use, transferred funds into his personal bank accounts, and moved significant amounts into casino and sportsbook accounts. Some early lenders were repaid with money from later investors; however, more than $1.4 million remains unpaid.
Barach is scheduled for sentencing on February 2, 2026. He faces a maximum sentence of up to 30 years in prison.
The investigation was conducted 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 are prosecuting the case.
“United States Attorney David Metcalf announced that Jonathan Barach, 46, of Philadelphia, Pennsylvania, entered a plea of guilty today before United States District Judge Mia Roberts Perez to one count of wire fraud and one count of making an illegal monetary transaction…” said officials.
