T
he Pennsylvania Attorney General has imposed a $350,000 penalty on former ABC Capital CEO Jason “Jay” Walsh for breaching a 2024 settlement that barred him from managing rentals in the state. ABC Capital, a collapsed real‑estate venture, sold more than 1,900 distressed homes in Philadelphia’s poorest neighborhoods to investors in Asia, Europe and South America during the 2010s. The company marketed the properties as turnkey rental opportunities, promising to buy, renovate and manage them in exchange for upfront cash. In reality, many deals fell through, leaving investors out of pocket and tenants in deteriorating dwellings. Investors and tenant‑rights groups labeled the scheme a “scam” or “Ponzi scheme.”
The settlement, described by the AG’s office as “deceptive and unfair,” prohibited Walsh from any direct involvement in property management in Pennsylvania. A Common Pleas Court judge found that Walsh violated the agreement by continuing to provide “management services for a property he owned,” communicating with tenants, and supplying inaccurate information to the AG’s office. The AG’s statement praised the court’s recognition of the breaches and reaffirmed the intent to enforce the prohibition.
Walsh’s business failures were detailed in 2022 investigations by The Inquirer and the Baltimore Banner. As Philadelphia’s real‑estate market appreciated, ABC Capital shifted operations to Baltimore, where Walsh was later convicted of acting as an unlicensed contractor and ordered to pay $20,500 in restitution—the only criminal case against him to date. In 2024, the AG’s settlement also barred Walsh and his wife, Blanca, from acting as landlords without a third‑party property manager and prohibited them from contacting tenants for 25 and 15 years, respectively. Despite this, court filings reveal that Walsh leased and managed two properties near the former ABC headquarters in Northern Liberties: his former residence and a unit acquired under Nolo Investments LLC. He claimed these were managed by an external firm, “My Mega Realty,” but tenants reported that he and his wife directly handled the properties and collected rent.
The AG’s enforcement reflects the broader pattern of ABC Capital’s misconduct: over $82 million in sales to 600 companies in Philadelphia alone, with partners Yaron Zer and Amir Vana facing lawsuits for unfinished units and unmet return promises. Many of the homes, purportedly renovated or managed by ABC, became uninhabitable due to shoddy work or neglect. Tenant‑union advocates noted that the company targeted low‑income, predominantly people‑of‑color communities, exploiting both investors and residents.
Walsh has not responded to inquiries, and his attorney has yet to comment. The AG’s action underscores the state’s commitment to holding former executives accountable for deceptive real‑estate practices that harmed investors and displaced vulnerable tenants.
