Two real estate portfolio managers with Hartford-based BH Property Management LLC were sentenced by U.S. District Judge Omar A. Williams this week in connection with an elaborate mortgage fraud scheme.
Authorities alleged that Jacob Deutsch and Aron Deutsch provided government-sponsored lenders, and the U.S. Department of Housing and Urban Development, with false information overstating the value of multifamily housing properties they managed in Hartford.
Based on those misrepresentations, the Deutsches fraudulently secured about $50 million in loans, according to authorities.
For example, Jacob Deutsch in June 2018 claimed an apartment building at 16 Evergreen Ave. was “100% occupied,” when it was empty, authorities said.
Jacob Deutsch, 58, of Brooklyn, N.Y., was sentenced Monday to five years in prison and fined $10,000.
Aron Deutsch, 63, of Monsey, N.Y., was sentenced to five years’ probation and received a $1 million fine.
Jacob and Aron Deutsch were arrested on May 19, 2021. Each man pleaded guilty to conspiracy to commit mail fraud and wire fraud affecting a financial institution.
Jacob Deutsch is required to report to prison on March 8.
