Two New York men were sentenced by U.S. District Judge Omar A. Williams in Hartford, Connecticut, for perpetrating a $50 million mortgage fraud scheme.
According to the charges brought against them, Jacob Deutsch and Aron Deutsch worked at B H Property Management LLC (BHPM), a multifamily property management company in Hartford. Between September 2016 and May 2021, then pair engaged in a scheme to defraud several financial institutions, Freddie Mac, Fannie Mae and the U.S. Department of Housing and Urban Development by providing false information overstating the value of multifamily housing properties managed by BHPM in connection with loans secured by those properties.
In this scheme, Jacob Deutsch provided false rent rolls and falsified leases to the victim financial institutions and their appraisers; he also deceived inspectors into believing that unoccupied apartments were occupied by staging the apartments with furniture and by requiring BHPM employees to lie to the inspectors about their occupancy status. Jacob Deutsch also provided the victim financial institutions with false and inflated income statements and financials for the properties, doctored bank statements, doctored or false documents overstating the purchase price of various multifamily housing properties, and doctored checks and invoices showing false or overstated capital improvements made to those properties.
The fraud also included providing photographs of money orders and checks purporting to reflect rent payments from fake tenants on the falsified rent rolls – the money orders and checks had been purchased by Aron Deutsch or BHPM employees at Aron Deutsch’s direction.
Jacob and Aron Deutsch were arrested on May 19, 2021. After his arrest and while released on bond, Jacob Deutsch victimized another lender to secure an $11 million loan.
The pair pleaded guilty to conspiracy to commit mail fraud and wire fraud affecting a financial institution on July 12, 2022, and June 1, 2022, respectively. Jacob Deutsch was sentenced to 62 months of imprisonment and four years of supervised release and was ordered to pay a $10,000 fine; he is required to report to prison on March 8. Aron Deutsch was sentenced to five years of probation and ordered to pay a $1 million fine.
Jacob Deutsch has a prior criminal history with a wire fraud conviction stemming from an insurance fraud scheme. In October 2003, he was sentenced to three months of imprisonment for that offense.
How is this different than what trump did?
It’s not any different!!!
NOT even close to what Trump did at all….you are way off base
Sounds trumpish.
11 million fraud and he is only ordered to pay 1 million back and 5 years vacation rent free.
Once he gets out he would be somewhere in the Caribbean enjoying the funds.
White collar crimes sentences are a joke.
Those sentences seem absurdly lightweight.
Yes ridiculously lightweight sentences for what they did. It had to be some type of settlement rather than going to trial.
They must be related to Joe Biden as they are getting off pretty easy. Steal 50 million dollars and only pay back $1,010,000! Why aren’t they required to pay it all back?
Real estate experts back up Trump’s property values and no lenders complained or were hurt and they want to fine him over 250 million dollars and take away his business license on the opinion of a wacko judge with no real estate knowledge. Shameful!
Sorry folks but the Trump family fraud far exceeds this paltry 50 Million, and the Trump fraud spans 30 years.