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ron Puretz, a real estate investor from New Jersey, was sentenced to 60 months in prison for his role in a large-scale commercial mortgage fraud scheme. He pleaded guilty to one count of wire fraud after prosecutors alleged he conspired with others to obtain $54.7 million in loans from Freddie Mac and lenders over several years. U.S. District Judge Robert Kirsh imposed the maximum sentence, ordering Puretz to pay $22 million in restitution.

    Puretz's lawyer did not comment on the matter. According to the Department of Justice, Puretz and co-conspirators, including Boruch Drillman, engaged in a scheme where they acquired properties at inflated prices, inducing lenders to make larger loans than necessary. This was done by presenting fraudulent sales contracts, as seen in one case where an office complex in Troy, Michigan was purchased for $43 million but presented with a contract valued at $70 million.

    Puretz's involvement in similar schemes included a multifamily property in Eureka, Illinois and a rental property in Little Rock, Arkansas, where he used the identity of an associate to hide his ownership. His son, Eli Puretz, pleaded guilty to one count of wire fraud for his role in the Michigan deal, while Drillman also pleaded guilty and awaits sentencing.

    The investigation into Puretz's activities has highlighted concerns about mortgage fraud and its impact on low-income housing. The Philadelphia Inquirer reported that properties owned by the Puretz family were plagued by code violations and deplorable living conditions, with one senior housing complex in Philadelphia accumulating 275 code violations and siphoning $1 million from residents' utility payments.