In a dramatic turn of events, three real estate investors have confessed to orchestrating an elaborate scheme to defraud Fannie Mae of a staggering $119 million. This revelation, made by the U.S. Department of Justice on Thursday, has shed light on a high-stakes financial fraud that spanned multiple years.
Frederick Schulman, 72, Chaim “Eli” Puretz, 29, and Moshe “Mark” Silber, 34, have all pleaded guilty to charges of wire fraud affecting a financial institution. Schulman and Puretz entered their pleas on Thursday, while Silber had previously acknowledged his guilt on July 9.
Between 2018 and 2020, the trio executed their deceitful plot, utilizing falsified documents and stolen identities to manipulate Fannie Mae into funding or purchasing mortgage loans far exceeding the actual values of the properties involved. The conspiracy’s brazen nature involved inflating the purchase prices of several properties to secure millions in unwarranted funds.
The $119 million in fraudulent loans were tied to two major acquisitions: the Williamsburg of Cincinnati, an Ohio apartment complex, and Troy Technology Park, a commercial property in Michigan. The government revealed that Silber and Schulman leveraged their company, Rhodium Capital Advisors, to acquire Williamsburg of Cincinnati for $70 million. They then deceived Fannie Mae with a fabricated sale contract claiming a purchase price of $95.85 million, thus obtaining a $74.25 million loan.
