Philly RE Broker Promised 16% for Bridge Loans — Ripped off Lenders and Investors for $1.4 Million
October 24, 2025
Bob Coleman
Founder & Publisher, Coleman Report
Philly RE Broker Promised 16% for Bridge Loans — Ripped off Lenders and Investors for $1.4 Million
Jonathan Barach has pled guilty to a $1.4 million loan fraud scheme. Between July 2017 and April 2021, the Philadelphia real estate broker raised over $3 million from lenders through a series of material misrepresentations, including by falsely stating that the raised funds would be used to provide bridge loans to builders and contractors looking to purchase and flip distressed real estate properties or to complete renovation projects.
At the time of these solicitations, no such projects existed. Barach’s entities did not provide real estate financing. None of the money raised from victims was used for its stated purpose. Instead, Barach withdrew cash, made personal expenditures, transferred funds into his own accounts, and moved large sums to casino and sportsbook operations.
In one example, an investor wired $50,000 to Barach. Within hours, he transferred the funds to his personal account, then wired the full amount to the Tropicana Casino for gambling. Although he repaid some earlier lenders with new funds from later ones—a classic Ponzi structure—more than $1.4 million of the fraudulently obtained loan proceeds remain unpaid.
Barach had cultivated the image of a successful professional. He was featured in Philadelphia Magazine’s “Best of Philly” 2011 issue as the city’s Best Realtor. On his LinkedIn page, he wrote:
“Such recognition and rank come by way of his pace-setting hard work, along with unflinching loyalty to the specific needs and wants of each client. Jonathan guarantees a self-imposed demand for client’s fulfillment and financial security, which he wins with integrity and distinctive charm.”
He also described himself as:
“An area native, Jonathan graduated from Pennsylvania State University with a degree in Labor and Industrial Relations and spent 11 years in contracts before coming into the Philadelphia real estate market. Being a Penn State grad and a Philly lifer make him match his clients’ new home or property with uncommon pleasure. He is responsible for high-end real estate sales and development and is intimate with every niche and neighborhood in Philadelphia. He has recently initiated a program that helps inform incoming graduate students about the cost, social attributes, and benefits of neighborhoods surrounding the campus.”
Behind that public image, Barach expanded his reach by enlisting third-party finders—individuals paid a percentage of whatever funding they helped secure. He provided these intermediaries with promotional materials and false information about his business to share with their own networks.
Among those materials was a PowerPoint presentation titled Philadelphia Investment Opportunity, which promised a 16% annual return and claimed that Barach’s entities had deployed loaned funds into projects generating cash flow and new listings. The presentation described a business that fronted money for land, new construction, and rehabs, and generated sales from sheriff’s deed acquisitions. None of it was true.
When lenders began to demand repayment after their notes expired, Barach turned to deception. He told some investors that his business accounts had been frozen by a bank due to a dispute with his brokerage. Others were told the funds were tied up in arbitration, or that an Italian investor was buying out a group of lenders and liquidating properties. Later, he blamed the COVID-19 pandemic, claiming shutdowns had halted his ability to repay.
On the few occasions he sent repayment checks, many bounced for insufficient funds, compounding lender losses with bank fees. The investigation confirmed that none of the lenders’ money was used for its stated purpose. The Barach entities never funded real estate projects, issued bridge loans, or financed renovations.
Jonathan Barach is scheduled for sentencing on February 2, 2026.