Jonathan Barach, a 47-year-old Philadelphia resident and real estate agent, was sentenced on Apr. 8 to 37 months in prison and two years of supervised release for orchestrating a fraudulent loan scheme that raised millions of dollars under false pretenses. United States District Judge Mia Roberts Perez also ordered Barach to pay nearly $1.5 million in forfeiture and restitution.
The sentencing follows Barach’s guilty plea last September to one count of wire fraud and one count of making an illegal monetary transaction. The case highlights the impact financial crimes can have on victims, as multiple individuals testified about the ongoing emotional and financial harm caused by Barach’s actions.
According to court documents, Barach was a licensed residential real estate agent and co-founder of The Barach Group, LLC, as well as TBG Real Estate, LLC—both based in Philadelphia. Between July 2017 and April 2021, he solicited approximately $3.1 million from at least 19 individuals and businesses for supposed short-term real estate investments that did not exist.
Barach falsely claimed the funds would be used for bridge loans to builders or contractors working on distressed properties or renovations. In reality, none of the money was invested in any projects; instead, he used it for personal expenses such as luxury items—including a diamond ring worth over $46,000—designer clothing, event tickets, casino deposits, and more.
Victims included people who trusted him with significant assets like retirement savings or children’s education funds. Although some earlier lenders were repaid with money from later investors—a practice resembling a Ponzi scheme—over $1.49 million remains unpaid.
The investigation involved several federal agencies including the FDIC Office of Inspector General, IRS Criminal Investigation Division, FBI, U.S. Secret Service and was prosecuted by Assistant United States Attorneys Terri Marinari and Samuel Dalke.
