E
li Puretz, a 29-year-old real estate investor, is sharing his story to warn others about the dangers of commercial mortgage fraud. He's facing five years in prison for his role in a multi-million-dollar scheme and has already pleaded guilty to one count of wire fraud. His father, Aron Puretz, received the maximum sentence of five years in prison.

    In an unusual move, Eli Puretz spoke openly about his crime on David Lichtenstein's podcast, Halacha Headlines. He revealed that the fraudulent transaction that led to charges was his first major real estate deal at age 24. Puretz claimed he was advised by more experienced individuals and saw an opportunity to "flip" a property with no equity.

    He and his co-conspirators bought an office complex outside of Detroit for $42.7 million in 2020, but presented a fake sales price of $70 million to a lender, securing a $45 million loan. Puretz acknowledged that this was a clear case of bank fraud, driven by the pressure to succeed quickly in his community.

    Puretz pointed out that young men in his community often come out of yeshiva and seek instant success in real estate or other fields. He said that discussions with friends about successful individuals who accumulated wealth rapidly clouded their judgment, making them more likely to engage in gray areas of the law.

    Puretz also discussed his involvement in another lawsuit with a former partner and touched on schemes involving credit card points, which he claimed were common among some members of his community. He expressed relief that he was caught early and acknowledged that interest and ambition are not the issues, but rather lack of good mentorship.

    Puretz suggested that many young people are being mentored by individuals who bend truths and push the boundaries of legality, making it easy to slide into more serious wrongdoing.