Jacob Rappaport, a Towson attorney, pleaded guilty on April 22 to conspiracy to commit bank fraud in connection with a real estate scheme involving fraudulent property sales and loans. The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, along with federal law enforcement officials.
The case highlights efforts by the U.S. Attorney for the District of Maryland to prosecute federal crimes and protect public safety through partnerships with law enforcement agencies, according to the official website. The office serves nearly six million residents across Maryland and employs over 200 personnel across its civil, criminal and administrative divisions.
According to court documents, Rappaport represented Alexander Schultz and his company Limitless Management in various transactions. In one instance, Coventry Realty LLC—controlled by Schultz—purchased an apartment complex called Coventry Manor for $5.5 million in January 2020 and later obtained a $6.2 million loan from Bank B using inflated sale contracts prepared by Rappaport. Two separate contracts were created: one provided to Bank B listing a sale price of $7.8 million and another side agreement showing the true price as approximately $6.9 million with undisclosed seller credits.
Rappaport also helped orchestrate further concealment by ensuring only part of these credits appeared on settlement statements while holding funds in his attorney trust account without informing Bank B about their intended destination back to Buyer #1’s company. He received payment for his role after facilitating wire transfers that misrepresented fee allocations at closing.
In another transaction involving residential homes wholesaling, Rappaport negotiated contract prices far below those reported to lenders; properties bought collectively for $3,675,000 were resold on paper at inflated values totaling nearly $7 million on the same day—a discrepancy concealed from Lender A through misleading documentation and fund transfers managed via Rappaport’s trust account.
Rappaport faces up to 30 years in federal prison when sentenced June 23 at 10 a.m., though actual sentences are typically less than maximum penalties set by law guidelines.
U.S. Attorney Hayes commended investigative agencies including FBI Baltimore Field Office; Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG); Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); as well as Assistant U.S. Attorney Sean R. Delaney who is prosecuting the case.
The U.S. Attorney's Office traces its origins back more than two centuries under a law enacted in 1789 according to its official website. It continues its mission today handling both criminal prosecutions and civil cases for the government while collecting debts owed nationwide.
