A second federal lawsuit involving several of the investors and appraisers named in AmeriTrust Mortgage Corp.’s Baltimore fraud case alleges another 59 loans defaulted, leaving two lenders pursuing foreclosures and taking ownership of properties they claim were materially overvalued.
Commercial Lender LLC and RCN Capital allege more than $10 million in losses, including interest, from transactions involving Baltimore investment properties. Their complaint describes homes that have been foreclosed upon, are moving toward lender ownership, have been transferred through deeds in lieu of foreclosure, or have been sold to third parties. It does not provide a breakdown by disposition.
The lawsuit adds another lender claim to the alleged scheme NMP covered Sept. 16, when AmeriTrust sought approximately $14.1 million over more than 90 investment-property loans.
The Commercial Lender and RCN complaint concerns an earlier loan pool, funded between June 2023 and February 2024. The lenders argue there are similarities between their transactions and those described by AmeriTrust demonstrate a continuing mortgage-fraud operation.
Properties Return To Market
A recent report from Realtor.com described the property-level consequences across the broader group of transactions associated with investors Eluzer Gold and Benjamin Eidlisz.
At 1829 N. Bond St., Realtor.com reported that Eidlisz purchased a property for $43,000 in May 2022 and sold it to Gold’s Levy Ventures for $310,000 in July 2023. After foreclosure, the home reportedly returned to the market in August 2026 with a $35,000 asking price and no apparent renovation.
Realtor.com also identified 3004 McElderry St. as part of a portfolio eventually sold to Gold- and Eidlisz-associated entities. Following foreclosure, that property reportedly returned to market with a $60,000 asking price.
Those asking prices do not establish completed sale prices or independently verified market values.
Defaults Expose Alleged Collateral Shortfalls
Commercial Lender and RCN claim they discovered materially inflated appraisals when they began foreclosing and independently evaluating the properties.
The lenders allege Gold, Eidlisz, and Shraga Lerner coordinated acquisitions, financing and resales through associated entities. Distressed properties were allegedly resold at substantially higher prices without renovations sufficient to justify the increases. Inflated valuations and rental information allegedly made the loans appear to satisfy loan-to-value and debt-service coverage requirements.
In one transaction, the complaint lists a $48,000 acquisition price for 2529 Woodbrook Ave., followed by a $200,000 resale and a $225,000 appraisal. The lenders allege the appraisal overstated the property’s value by approximately $113,000.
The complaint also alleges certain appraisals included photographs from other properties or descriptions of nonexistent renovations. Separate claims accuse appraisal management companies and desktop reviewers of failing to identify valuation deficiencies, and title companies of withholding material information about recent, lower-priced acquisitions. The claims and alleged conduct differ by defendant.
Fallout Reaches Tenants
While many properties were reportedly vacant when purchased, Realtor.com reported that some renters discovered foreclosure notices at their addresses. Maryland's laws allow tenants to remain in foreclosed properties until their leases expire, but coming up with the deposit necessary to move houses can be a strain for those on fixed income.
Will Rapuano of Pruitt Title, who handles closings across Maryland, Virginia, and DC, told Realtor.com, “The damage there is real. Foreclosures pull values down on the surrounding blocks, tenants face displacement, and the private lenders who got burned have pulled back. That makes it harder for honest investors to finance the rehabs those same neighborhoods need."
Realtor.com also noted that Baltimore saw a 26% year-over-year increase in foreclosures after the scheme was initially reported by Banner in 2025. In August 2026, ATTOM reported that Baltimore City ranked 5th in per capita foreclosures, with one in every 677 homes foreclosed upon.
Commercial Lender and RCN claim more than $10 million in losses, including interest, and seek recovery of unpaid loan proceeds and property preservation costs. They further allege, upon information and belief, that the individuals and entities involved purchased as many as 500 houses in Baltimore City.
The lenders seek damages from the parties they allege enabled the transactions, including triple damages under their civil racketeering claims.
FBI Investigation Pending
The lawsuits filed by Ameritrust and RCN Capital are both in civil court, but Realtor.com noted that criminal charges are a possibility considering the FBI investigation into Gold and Eidlisz is still pending.
A separate complaint filed in February by Pigtown Portfolio LLC and East Baltimore Investments II LLC in Baltimore City Circuit Court alleges Eidlisz and Gold also engaged in deed fraud. The lawsuit alleges Eidlisz falsely represented himself as a managing member of the properties and sold them to Gelt Ventures LLC, owned by Eidlisz and Gold, using $1.7 million in financing.
In a separate criminal case, Realtor.com reported that Alexander Schultz and attorney Jacob Rappaport received prison sentences of two months and 15 months, respectively, for their roles in a similar scheme. According to the article, Schultz purchased 42 Baltimore homes in December 2021 for $87,500 each and, working with co-conspirators to inflate their prices, resold them the same day for $6.9 million, generating more than $3 million in profit. Realtor.com reported that the properties were subsequently sold to Zahav Ventures LLC for $9.9 million in 2023 and are now in foreclosure.
Bottom Line
A qualifying DSCR and acceptable LTV offer little protection if the underlying rents and property values are unreliable. The allegations reinforce the need to scrutinize rapid resales, unexplained price increases, and recurring connections among borrowers, sellers, and settlement providers across the pipeline.
