PHILADELPHIA, PA — A Philadelphia man was sentenced Wednesday, April 8, to 37 months in prison for his role in a fraudulent real estate loan scheme that raised approximately $3.1 million from investors for projects that did not exist, federal prosecutors said.
Jonathan Barach, 47, was also sentenced to two years of supervised release by U.S. District Judge Mia Roberts Perez, according to the U.S. Attorney’s Office.
The court ordered Barach to pay $1,496,928.99 in restitution and forfeiture, along with an additional $200 assessment.
Prosecutors said Barach solicited funds from 19 individuals and businesses between July 2017 and April 2021, claiming the money would be used to provide short-term bridge loans for real estate development projects in Philadelphia.
According to court filings, no such projects existed, and none of the funds were invested in real estate.
Barach, a licensed residential real estate agent and co-founder of The Barach Group LLC, also operated TBG Real Estate LLC during the scheme, authorities said.
Investigators said he used the companies to make false representations about investment opportunities, including claims that funds would support property purchases, renovations and development financing.
Instead, prosecutors said Barach transferred investor funds into personal accounts and used the money for personal expenses, including a diamond ring valued at more than $46,000, luxury clothing, sporting event tickets, and large deposits at casinos and sportsbooks.
Authorities said Barach repaid some earlier investors using funds from later investors, but more than $1.49 million in losses remain outstanding.
During sentencing, the court heard testimony from multiple victims describing financial and personal impacts tied to the scheme, prosecutors said.
Barach was charged by information in August 2025 and pleaded guilty in September to one count of wire fraud and one count of engaging in an illegal monetary transaction.
The case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General, IRS Criminal Investigation, and the FBI, with assistance from the U.S. Secret Service.
Assistant U.S. Attorneys Terri Marinari and Samuel Dalke prosecuted the case.
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