Towson Attorney Charged with Bank Fraud in Baltimore Real Estate Deals
Federal prosecutors have charged Towson real estate lawyer Jacob M. Rappaport with conspiracy to commit bank fraud, alleging he fabricated financial details in transactions involving a Baltimore apartment building and numerous homes. The charges stem from a scheme to secure more favorable loan terms by inflating sale prices.
Details of the Alleged Fraud
According to a criminal information filed on March 12, 2026, by the Maryland U.S. Attorney’s Office, Rappaport conspired with client Alexander Schultz to defraud financial institutions. The alleged scheme involved inflating the purchase prices of properties to obtain more advantageous financing.
In December 2021, Limitless Management, co-owned by Schultz and an unnamed “Person #1,” sold the Coventry Manor apartment complex in Southwest Baltimore for approximately $6.9 million. However, they falsely reported a sale price of $7.8 million to “Bank B.” Rappaport is accused of preparing both the legitimate sales agreement and a secret side deal that concealed the true price from the bank. Approximately $352,000 was allegedly deposited into Rappaport’s attorney trust account, of which he retained $16,250 before transferring the remainder back to the buyer.
The alleged fraud extended to the resale of 42 Baltimore homes. Rappaport, Schultz, and their partner allegedly inflated the prices of these homes to enable a buyer to secure 100% financing, as the buyer lacked the $2 million needed for closing costs. A $4.725 million deal was misrepresented to the lender as a $6.93 million transaction. Approximately $2.8 million was wired to Rappaport’s trust account, with over $2 million subsequently returned to the buyer.
Background on the Individuals and Firms Involved
Rappaport was a partner at Levin & Gann, P.A. In Towson, Maryland, where he worked for 14 years, being promoted to partner in early 2019. The firm terminated his employment upon learning of the charges on Friday, March 14, 2026. Jacob M. Rappaport’s profile has been removed from the firm’s website.
Levin & Gann stated that the alleged misconduct did not involve misuse of client funds and that client interests remain protected. The firm has pledged full cooperation with authorities. Jacob M. Rappaport’s LinkedIn profile shows over 500 connections and details his experience and education at the University of Baltimore School of Law.
Alexander Schultz pleaded guilty in January 2024 to conspiracy to commit bank fraud related to the same transactions and agreed to a restitution order of nearly $850,000. His sentencing has been indefinitely postponed. Schultz co-owned the real estate company Limitless Management.
Legal Implications
A criminal information, unlike an indictment, is issued directly by a prosecutor’s office rather than a grand jury. The maximum sentence for conspiracy to commit bank fraud is 30 years in prison. As of March 16, 2026, Rappaport has not retained legal counsel, according to court records. MSN News provides further details on the case.
Justia lists Jacob M. Rappaport as practicing real estate, business, and estate planning law in Towson, Maryland.