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Real estate investor Boruch “Barry” Drillman was sentenced to five years of probation for his role in a $165 million fraud scheme involving multifamily and commercial mortgage loans between 2018 and 2020.

Drillman managed BRC Williamsburg Holdings LLC, which purchased multifamily property Williamsburg of Cincinnati in Cincinnati, Ohio, and Troy Technology Holdings LLC, which purchased commercial property Troy Technology Park in Troy, Michigan. In March 2019, Williamsburg of Cincinnati was acquired for $70 million – but Drillman and his co-conspirators from Rhodium Capital Advisors presented a stolen identity to a lender and Fannie Mae with a purchase and sale contract for $95.85 million and other fraudulent documents. On March 8, 2019, Madison Title Agency performed two closings, one for the true $70 million sales price and another for the fraudulent $95.85 million sales price presented to the lender.

In September 2020, Troy Technology Park was acquired for $42.7 million. Drillman and his co-conspirators presented the lender with a fraudulent purchase and sale contract for $70 million, as and they also provided the lender and appraiser a fraudulent letter of intent to purchase the property from another party for $68.8 million and other fraudulent documents. To conceal the fraudulent nature of the transaction, Drillman and his co-conspirators arranged for a short-term $30 million loan, which was used to make it appear that they had the funds needed to close on the loan. On Sept. 25, 2020, Riverside Abstract performed two closings, one for the true $42.7 million sales price and another for the fraudulent $70 million sales price presented to the lender.

Drillman pleaded guilty in December 2023 to one count of conspiracy to commit wire fraud affecting a financial institution. The Real Deal reports that while Drillman faced up to five years in prison, he received probation as US District Court Judge Robert Kirsch cited Drillman’s cooperation with investigators, his show of remorse and poor health, and the judge’s determination that Drillman was less culpable than his co-conspirators.

Nonetheless, Kirsch also mandated that Drillman pay a $250,000 fine and abide by special conditions including drug and alcohol tests and certain business and financial disclosures.