Jacob Rappaport, a Towson attorney, pleaded guilty on April 22 to conspiracy to commit bank fraud in connection with a real estate scheme involving false contracts and concealed payments. The plea was announced by Kelly O. Hayes, U.S. Attorney for the District of Maryland, along with federal law enforcement officials.
The case highlights efforts by federal authorities to address complex financial crimes that can undermine trust in real estate transactions and the broader banking system. According to court documents, Rappaport represented Alexander Schultz and his company Limitless Management during multiple property deals.
In January 2020, Coventry Realty LLC—controlled by Schultz—purchased Coventry Manor in Baltimore for $5.5 million before obtaining a $6.2 million loan from Bank B the following year. Later, when selling Coventry Manor to another buyer, Rappaport prepared two contracts: one showing an inflated sale price of $7.8 million for the bank and another undisclosed agreement listing the actual price as approximately $6.9 million with significant seller credits.
Rappaport also participated in concealing funds through his attorney trust account and assisted co-conspirators in identifying legal counsel willing to participate in fraudulent activity after another lawyer declined involvement. The HUD-1 Settlement Statement reflected misleading figures including a fake “Reno Credit” and misrepresented fees paid out at closing.
Additionally, Rappaport helped negotiate contracts related to wholesaling residential homes below market value before reselling them at inflated prices using similar concealment tactics regarding down payments and sale proceeds distribution.
Rappaport faces up to 30 years in federal prison for conspiracy to commit bank fraud; sentencing is scheduled for June 23 at 10 a.m., though actual sentences are typically less than maximum penalties under federal guidelines.
Hayes commended law enforcement agencies involved and thanked Assistant U.S. Attorney Sean R. Delaney for prosecuting the case.
The U.S. Attorney’s Office serves nearly six million Maryland residents across civil, criminal, and administrative divisions according to its official website. The office employs over 200 personnel who prosecute federal crimes—including cases like this one—and handle civil matters on behalf of the government according to its official website. It traces its origins back more than two centuries according to its official website.
