Jonathan Barach, a Philadelphia real estate agent, was sentenced on Apr. 8 to 37 months in prison and two years of supervised release for his role in a fraudulent loan scheme that raised millions of dollars from individuals and businesses. United States District Judge Mia Roberts Perez also ordered Barach to pay over $1.49 million in forfeiture and restitution after hearing testimony from victims who described the financial and emotional harm caused by his actions.
The sentencing follows Barach’s guilty plea last September to one count of wire fraud and one count of making an illegal monetary transaction. According to United States Attorney David Metcalf, Barach used his companies, The Barach Group, LLC and TBG Real Estate, LLC, between July 2017 and April 2021 to solicit about $3.1 million under false pretenses.
Court documents show that Barach claimed the funds would be used for short-term real estate investments in Philadelphia, such as bridge loans for property renovations or flips. However, there were no actual projects or financing opportunities; instead, he used the money for personal expenses including luxury goods and gambling deposits.
Victims included people who knew Barach personally and entrusted him with significant savings intended for retirement or education funds. While some earlier lenders were repaid using money from later investors, more than $1.49 million remains unpaid.
The case was investigated by the FDIC Office of Inspector General, IRS Criminal Investigation, FBI, with assistance from the U.S. Secret Service. Assistant United States Attorneys Terri Marinari and Samuel Dalke prosecuted the case.
