A Philadelphia real estate agent has pleaded guilty to charges connected to a fraudulent loan scheme that raised millions of dollars from individuals and businesses. Jonathan Barach, 46, entered his plea before United States District Judge Mia Roberts Perez 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, as well as the founder of TBG Real Estate, LLC. Both companies were based in Philadelphia. While these companies offered traditional real estate services, Barach also used them to solicit money for what he claimed were short-term real estate financing opportunities.
Between July 2017 and April 2021, Barach raised more than $3 million by telling lenders their funds would be used to provide bridge loans for builders and contractors looking to purchase or renovate distressed properties. In reality, there were no such projects. The companies did not provide any real estate financing, and Barach used the funds for personal expenses and debts.
“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,” according to prosecutors. “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.”
Barach is scheduled for sentencing on February 2, 2026. He faces up to 30 years in prison if given the maximum penalty.
The case was investigated by several federal agencies including the FDIC Office of Inspector General, IRS Criminal Investigation, FBI, and U.S. Secret Service. Assistant United States Attorneys Terri Marinari and Samuel Dalke are prosecuting.
