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federal judge in New Jersey handed down a harsh sentence to Lakewood real estate investor Aron Puretz. U.S. District Court Judge Robert Kirsch sentenced Puretz to 60 months in prison and ordered him to pay $22 million in restitution to his lenders, who were victims of a multi-year conspiracy involving inflated property values through fake documents. Puretz pleaded guilty to one count of wire fraud this summer.

    Judge Kirsch expressed deep concern over Puretz's lack of empathy for his victims and criticized his lawyer's attempt to portray him as a charitable man. The judge noted that it was easy for someone with Puretz's wealth, who owns an 11-bedroom mansion in Lakewood, to be generous but still commit massive fraud.

    Kirsch also took issue with Puretz's failure to provide information about his finances and assets, saying he had no idea how Puretz made a living or what his wife's financial situation was. The judge was particularly upset that Puretz claimed to have purchased his mansion for $500,000 in 2018, despite its likely value being much higher.

    The sentencing is seen as a bellwether for Puretz's co-conspirators, including his son Eli Puretz, who have been charged with commercial mortgage fraud. Judge Kirsch made it clear that law enforcement will be vigilant and that those involved in such schemes can expect severe consequences.

    Puretz was involved in three schemes, according to prosecutors, including one where he and his co-conspirators acquired an office complex in Troy, Michigan, for $43 million but presented a lender with a fraudulent sales contract for $70 million. His son also pleaded guilty for his involvement in this scheme. The Puretz family owns over 16,000 units of low-income housing nationwide, many of which are in disrepair and have been the subject of tenant complaints.

    During the hearing, more details emerged about Aron Puretz's background, including that he has no high school degree or GED but studied in a yeshiva. His father was a real estate developer, and two of his sons are also in real estate. Puretz claimed to be an alcoholic who drank heavily for decades, but Judge Kirsch was skeptical.

    At the end of the hearing, Puretz was detained by the U.S. Marshalls, and the judge denied his request to see his mother or turn himself in later due to concerns about flight risk.