Four real estate investors have been sentenced to prison for their roles in a massive fraud scheme that spanned several years and involved millions of dollars. These individuals used fake documents and trickery to obtain large loans for commercial and apartment properties. Their actions led banks and financial institutions to lend them far more money than the properties were actually worth.
The criminals behind this scheme are Aron Puretz, 53, and his son, Chaim “Eli” Puretz, 29, both from New Jersey; Moshe “Mark” Silber, 34, from New York; and Fredrick Schulman, 72, also from New York. They all played different roles in making these fraudulent transactions appear real. The courts found them guilty of conspiracy to commit wire fraud affecting financial institutions.
The Troy Technology Park Fraud
Aron and Eli Puretz owned a commercial property called Troy Technology Park, located in Troy, Michigan. In September 2020, they bought this property for about $42 million. Soon after, they tricked a bank into thinking they were selling it for a much higher price—$70 million. To do this, they created fake paperwork that showed a sale at the inflated price.
The bank, believing the property was worth much more than it actually was, provided a loan of $45 million to a fake buyer. To make this deception look real, Aron and Eli, along with their co-conspirators, used a short-term $30 million loan. This made it seem as though the buyer had the money to complete the purchase.
Brandon Becker Sentenced to Seven Years for $19 Million Fraud
On September 25, 2020, a title company in Lakewood, New Jersey, held two closings at the same time. One closing was for the real price of $42 million, while another was done using the fake price of $70 million. This trick fooled the lender into approving a loan based on the much higher price, allowing the fraudsters to pocket millions in profits.
Aron Puretz received a sentence of 60 months (five years) in prison and was ordered to pay $22,235,457 in restitution. His son, Eli Puretz, was sentenced to 24 months (two years) and must pay $20,315,457 back.
The Williamsburg of Cincinnati Fraud
The second fraud involved Moshe “Mark” Silber and Fredrick Schulman, who were part of a company called Rhodium Capital Advisors. This company was responsible for managing and acquiring properties, including a large apartment complex called Williamsburg of Cincinnati, located in Cincinnati, Ohio.
In March 2019, Rhodium Capital Advisors bought Williamsburg of Cincinnati for $70 million. However, instead of reporting the real price, Silber, Schulman, and their partners falsely claimed they were purchasing it for over $95 million. They even stole someone’s identity to help create a fake purchase-and-sale contract to convince the bank and Fannie Mae, a major mortgage company, that this was true.
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Because of their lies, the bank and Fannie Mae approved a loan of more than $74 million, far more than the property was actually worth. Similar to the Troy Technology Park fraud, two closings were performed: one for the real price of $70 million and another for the fake price of over $95 million.
As a result, Silber was sentenced to 30 months (two and a half years) in prison. Schulman received a sentence of 12 months and one extra day in prison, followed by nine months of home confinement. The exact amount of money they must repay will be decided in a later court hearing.
How Authorities Caught Them
The Justice Department, along with the U.S. Attorney’s Office in New Jersey and federal agencies such as the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) and the U.S. Postal Inspection Service (USPIS), worked together to investigate these crimes.
The fraudsters had used complex financial tricks to make their deals look legitimate, but investigators uncovered their lies by carefully reviewing financial records and discovering the fake paperwork they had submitted. Prosecutors Siji Moore and Martha Nye played key roles in ensuring that these criminals were brought to justice.
This case highlights how financial fraud can harm banks, lenders, and even ordinary people who depend on the housing market. These four individuals now face serious consequences for their actions.
