Suspected $100M real estate fraud scheme uncovered in Baltimore

A suspected real estate fraud ring involving New York-based investors has triggered a wave of foreclosures across Baltimore, according to a local report.

A months-long investigation by The Baltimore Banner uncovered the scheme, which allegedly involved EGBE Ventures and related companies tied to investors Eluzer Gold and Benjamin Eidlisz.

The group reportedly purchased more than 700 homes — largely in majority-Black neighborhoods — at inflated prices financed by debt service coverage ratio (DSCR) loans.

Investors are accused of taking out $100 million in DSCR loans from dozens of private lenders — using projected rental income as collateral.

Case specifics

According to the report, many transactions were recorded for prices far above each property’s previous sale value or public appraisal estimate.

In one case, the group is said to have bought a townhouse for $100,000 that had sold for just $13,000 five years earlier, securing a $220,000 loan for the deal.

Most of the excess funds allegedly flowed to an LLC controlled by Eidlisz — with no evidence that promised renovations ever took place.

Of the hundreds of properties tied to the group, The Banner found that more than 70% showed no record of renovation permits since 2019, despite claims of significant improvements.

Now, over half of the portfolio is reportedly in foreclosure, raising fears about neighborhood stability, declining property values and displaced tenants.

Foreclosures in the Baltimore metro area surged 26% in the third quarter compared with the previous period and were up 11% year-over-year, according to ATTOM.

State and industry response

Maryland Secretary of Housing and Community Development Jake Day said his office is tracking the affected properties and coordinating with local partners to mitigate damage.

“At this time, it appears this activity is not representative of the overall Baltimore home acquisition and renovation market,” Day told Realtor.com in a statement. “This predatory scheme won’t deter us from our 15-year vision to eliminate vacancy in Baltimore.”

Day said his department is working with the Baltimore Mayor’s office and community development groups to monitor market changes and identify redevelopment opportunities for vacant properties.

Pete Mills, senior vice president at the Mortgage Bankers Association, said it’s important to make clear that this was real estate fraud, not mortgage fraud.

“From what we understand about what happened in Baltimore, it was a sophisticated scheme that involved appraisers and title company actors who intentionally circumvented the protocols and documentation that lenders rely on to protect themselves from making loans on fraudulent real estate transactions,” Mills told Realtor.com. “The lenders on these loans are victims of the fraud, as are the tenants in the properties now in foreclosure and disrepair.”

Fallout and federal response

One lender — RCN Capital — said it was among those deceived.

“A group of bad actors operating within the real estate investment space recently orchestrated a highly sophisticated scheme that led to devastating consequences in the Baltimore area,” the company stated. “These individuals deliberately studied the processes and guidelines of reputable lenders, including RCN Capital, to exploit vulnerabilities in the system.”

The U.S. Attorney’s Office in Maryland did not comment, citing the federal government shutdown — while the Baltimore City State’s Attorney’s Office did not respond to inquiries. Attempts to reach Gold and Eidlisz, or their legal representatives, were unsuccessful, Realtor.com said.