Three Real Estate Investors Plead Guilty To Mortgage Fraud Conspiracy

By KIMBERLEY HAAS

Three real estate investors each face a maximum penalty of five years in prison after pleading guilty to obtaining multi-million dollar loans to fraudulently acquire properties.

Fredrick Schulman, 72, of New York, and Chaim “Eli” Puretz, 29, of New Jersey, pleaded guilty on Thursday to one count of conspiracy to commit wire fraud affecting a financial institution. Moshe “Mark” Silber, 34, of New York, pleaded guilty on July 9 to one count of conspiracy to commit wire fraud affecting a financial institution.

According to officials at the U.S. Department of Justice, court documents show that Schulman and Silber conspired with others to use a stolen identity to present a lender and Fannie Mae fraudulent documents and a purchase contract with an inflated purchase price to buy an apartment complex in Cincinnati, Ohio.

Officials say that on March 8, 2019, two closings were performed, one for the true $70 million sales price and another for the fraudulent $95.85 million sales price presented to the lenders.

Puretz and his co-conspirators bought a technology park in Troy, Michigan, after sending a lender and appraiser fraudulent documents and a letter of intent to purchase the property from another party for an inflated purchase price.

Officials say that on Sept. 25, 2020, a title company based in Lakewood, New Jersey, performed two closings, one for the true $42.7 million sales price of the technology park and another for the fraudulent $70 million sales price presented to the lender.

Schulman, Silber, and Puretz are scheduled to be sentenced on Dec. 3.

Anyone with information concerning similar multifamily or commercial mortgage fraud can report it by contacting the FHFA-OIG Hotline at 800-793-7724 or by using an online allegation form.