Philly real estate agent going to prison for loan fraud scheme totaling $3 million

A Philadelphia real estate agent was sentenced to years behind bars after pleading guilty to a loan fraud scheme involving millions of dollars, officials said.

Jonathan Barach, 47, was a co-founder and agent at The Barach Group LLC and TBG Real Estate LLC based out of Philadelphia for several years.

While operating the companies, he raised over $3 million from people and businesses by lying about using the money to buy and flip properties with the help of contractors between July 2017 and April 2021, according to officials.

Prosecutors said that when Barach made these promises, the projects were not real.

Barach allegedly took the money he raised for his own personal use, including withdrawing cash and transferring amounts into his back accounts.

He also was found to have purchased a 4.7 carat diamond ring for over $46,000 as well as clothing from Louis Vuitton.

According to officials, Barach put large amounts of the money into online accounts he had with casinos and sportsbooks.

Some of the borrowed money was paid back to lenders, but officials said that more than $1.4 million was never repaid.

Barach pleaded guilty in September of 2025 to charges including wire fraud and making an illegal monetary transaction.

Barach was sentenced to 37 months in prison with two years of supervised release on April 8, 2026.

The judge also ordered that Barach pay a forfeiture judgment of $1,496,928.99, victim restitution of $1,496,928.99 and a $200 restitution.