By: Richard L. Smith
A New Jersey man pleaded guilty today to participating in a multi-year conspiracy to fraudulently obtain over $54.7 million in loans and to acquire multifamily and commercial properties using deceptive practices.
According to court documents, from 2016 to 2022, Aron Puretz, 53, conspired with others to deceive lenders into issuing multifamily and commercial mortgage loans by providing fictitious documents, including inflated purchase contracts and fake financial statements.
Puretz, an employee of Apex Equity Group and a part-owner of several properties, was involved in presenting fraudulent documents to lenders.
In February 2017, Puretz and his conspirators acquired Maple Lawn in Eureka, Illinois, for $4.1 million. However, they presented a fraudulent purchase and sale contract for $5.8 million to the lender and Freddie Mac.
A title and settlement company in Lakewood, New Jersey, conducted two closings to facilitate this deception.
Puretz and his team created JPC Charities, a nonprofit entity, to obtain tax-exempt status for the properties they owned.
They provided false statements to the city of Eureka, Illinois, to secure a property tax exemption.
In July 2019, Puretz and his conspirators acquired Big Country Chateau in Little Rock, Arkansas. Knowing he wouldn't be approved as an owner by the lender and Freddie Mac, Puretz used an associate's identity to hide his involvement.
Federal officials said he concealed his ownership from the Department of Housing and Urban Development and other agencies.
In September 2020, Puretz and his conspirators acquired Troy Technology Park in Troy, Michigan, for $42.7 million but presented a fraudulent purchase contract for $70 million to the lender.
They submitted false documents to support the inflated price and arranged a short-term $30 million loan to appear financially capable of closing the deal.
Again, a title and settlement company in Lakewood, New Jersey, facilitated the deceptive transactions.
Puretz pleaded guilty to one count of conspiracy to commit wire fraud affecting a financial institution.
He is scheduled for sentencing on October 30, 2024, and faces a maximum penalty of five years in prison. A federal district court judge will determine the final sentence, considering the U.S. Sentencing Guidelines and other statutory factors.