PHILADELPHIA, PA — A Philadelphia real estate agent admitted Tuesday to orchestrating a multimillion-dollar loan scheme built on false promises of real estate financing that never existed.
Jonathan Barach, 46, pleaded guilty before U.S. District Judge Mia Roberts Perez to one count of wire fraud and one count of making an illegal monetary transaction. Prosecutors said Barach defrauded investors of more than $3 million between 2017 and 2021.
According to court filings, Barach operated as co-founder and principal agent of The Barach Group, LLC, and later formed TBG Real Estate, LLC. He solicited funds by telling lenders their money would provide short-term bridge loans for contractors and builders flipping distressed properties or completing renovations. In reality, prosecutors said, no such projects existed.
Instead of financing real estate ventures, Barach used the money for personal expenses, including cash withdrawals, transfers to personal accounts, and large payments to casinos and sportsbook operations. Prosecutors said he repaid some early investors with funds from later ones, but more than $1.4 million remains unpaid.
“This was a calculated scheme built on lies and deception,” U.S. Attorney David Metcalf said in announcing the plea.
Barach faces up to 30 years in prison when he is sentenced on Feb. 2, 2026.
The case was investigated by the FDIC Office of Inspector General, IRS Criminal Investigation, and the FBI, with support from the U.S. Secret Service. Assistant U.S. Attorneys Terri Marinari and Samuel Dalke are prosecuting.
Barach remains free pending sentencing.
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