Towson Attorney Sentenced to 15 Months in Coventry Manor Real Estate Bank Fraud Scheme

Published Nov. 6, 2026. Case status is current as of that date.

Banks that finance apartment sales rely on settlement papers that match the real deal. On June 23, 2026, the U.S. Attorney's Office for the District of Maryland announced that Jacob Rappaport, 41, an attorney, had been sentenced to 15 months in prison for conspiracy to commit bank fraud [1].

Status: Rappaport has been convicted and sentenced by U.S. District Judge Matthew J. Maddox. He previously pleaded guilty (announced April 22, 2026) [2].

How the scheme worked, according to court documents

According to the U.S. Attorney's Office [1]:

1. Rappaport represented Alexander Schultz and Limitless Management on real estate deals. In January 2020, Coventry Realty bought Coventry Manor, a Baltimore apartment complex, for $5.5 million; in March 2021 it obtained an approximately $6.2 million loan from "Bank B."
2. In December 2021, Schultz agreed to sell Coventry Manor to Buyer #1, who would assume the Bank B loan. Rappaport prepared two contracts: one shown to Bank B listing a $7.8 million purchase price, and an undisclosed side agreement listing about $6.9 million with roughly $847,619 in "seller credits."
3. Before settlement, conspirators agreed that only part of the credits would appear on the HUD-1, including a fictitious "$85,000 Reno Credit," and that Rappaport would hold $335,367.93 in his attorney trust account to conceal funds returning to Buyer #1 from the bank.
4. When Buyer #1's first lawyer refused to participate, Rappaport helped find another lawyer who would.

The person sentenced

Jacob Rappaport, 41 (Towson/Baltimore area). Attorney. Conspiracy to commit bank fraud; sentenced to 15 months [1].

Red flags in commercial real estate closings

These are general warning signs, not claims about any buyer or bank in this case.

• Two different purchase prices for the same deal, one of them hidden from the lender.
• Large "credits" or trust-account holds that are not clearly disclosed on the settlement statement.

What to do

• Lenders and title insurers should compare recorded contracts with HUD-1/Closing Disclosure figures.
• Report bank fraud to the FBI at ic3.gov and FDIC-OIG.

Case status (as of Nov. 6, 2026)

Defendant	Court	Status	Source
Jacob Rappaport, 41	U.S. District Court, D. Md. (Judge Matthew J. Maddox)	Pleaded guilty (announced April 22, 2026); sentenced June 23, 2026 to 15 months for conspiracy to commit bank fraud	[1], [2]

Statuses can change, including through appeal.

Sources

1. U.S. Attorney's Office, District of Maryland, "Towson Attorney Sentenced for Role in Real Estate Bank Fraud Scheme," June 23, 2026. https://www.justice.gov/usao-md/pr/towson-attorney-sentenced-role-real-estate-bank-fraud-scheme
2. U.S. Attorney's Office, District of Maryland, "Towson Attorney Pleads Guilty to Bank Fraud for Role in Real Estate Scheme," April 22, 2026. https://www.justice.gov/usao-md/pr/towson-attorney-pleads-guilty-bank-fraud-role-real-estate-scheme