A Philadelphia real estate agent has pleaded guilty to charges related to a fraudulent loan scheme that raised millions of dollars under false pretenses. 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 presented in court, Barach was a licensed residential real estate agent and co-founder and principal agent for The Barach Group, LLC. He also established TBG Real Estate, LLC. Through these companies, he solicited funds from individuals and businesses for what he claimed were short-term real estate financing opportunities.
Between July 2017 and April 2021, Barach collected more than $3 million by telling lenders their money would be used as bridge loans for builders or contractors involved in purchasing or renovating distressed properties. However, prosecutors stated that no such projects existed and the funds were not used as described. Instead, Barach used the money for personal expenses and gambling activities.
“None of the money raised by Barach from his victims was used for the stated purpose. Instead, Barach typically withdrew the funds in cash, made assorted personal expenditures, transferred funds to his personal bank accounts, and moved large sums to various accounts that he held with casinos and sportsbook operations. Although Barach paid back some of his earlier lenders with a portion of the funding secured from later lenders, over $1.4 million of the fraudulently obtained loan proceeds remain unpaid,” according to details released by U.S. Attorney David Metcalf’s office.
Barach is scheduled for sentencing on February 2, 2026. He faces a maximum sentence of up to 30 years in prison.
The case was investigated by multiple agencies including the FDIC Office of Inspector General, IRS Criminal Investigation division, FBI, and U.S. Secret Service. Assistant United States Attorneys Terri Marinari and Samuel Dalke are prosecuting the case.
