New Jersey Man Sentenced to Two Years in Prison for $35 Million SBA Loan Fraud Scheme

A New Jersey man, Rajendra G. Parikh, has been sentenced to two years in federal prison for his role in a conspiracy that fraudulently obtained more than $35 million in loans guaranteed by the U.S. Small Business Administration (SBA). The sentencing, announced in late June, marks another conviction in a series of high-profile financial fraud cases being prosecuted by federal authorities in the region.

Cases like this are a stark reminder that the pursuit of capital through fraudulent means carries severe consequences. For business owners, the temptation to embellish financial statements or misrepresent assets on loan applications can be high, especially in challenging economic climates, but the downstream risks of criminal prosecution and financial ruin are catastrophic.

The conspiracy Parikh participated in involved submitting fraudulent loan applications to financial institutions. These loans were backed by the SBA, a federal agency that provides guarantees to lenders to encourage them to offer capital to small businesses. Fraud involving these programs diverts critical funding from legitimate enterprises and exposes both taxpayers and financial institutions to significant losses.

Parikh’s sentencing is part of a broader federal crackdown on financial crimes throughout New Jersey and the surrounding areas. In a separate but similar case, the Department of Justice recently announced significant prison sentences for four real estate investors involved in a multi-year conspiracy to fraudulently obtain loans on commercial properties. According to the DOJ, Aron Puretz, 53, was sentenced to 60 months in prison, while his son, Chaim “Eli” Puretz, 29, received a 24-month sentence. Their co-conspirators, Moshe “Mark” Silber, 34, and Fredrick Schulman, 72, were sentenced to 30 months and 12 months and a day, respectively.

The scheme orchestrated by the Puretz group involved inflating property sales prices on documents submitted to lenders. For example, in one transaction, the group used a title company to perform two simultaneous closings—one reflecting the true, lower sales price and another with a fraudulent, higher price that was presented to the lending institution to secure a larger loan. Aron Puretz was ordered to pay over $22.2 million in restitution, while his son was ordered to pay more than $20.3 million.

In our experience, the internal vulnerabilities that allow for this type of fraud—or make a company a target for it—are often overlooked until it's too late. Weak financial controls, a lack of independent oversight, and poorly documented processes create fertile ground for misconduct. Effective financial risk management isn't just about external threats; it's about building a resilient internal framework that can withstand scrutiny from lenders, investors, and regulators. This becomes especially critical during periods of rapid growth, capital raising, or M&A activity, where due diligence can uncover irregularities that derail entire deals. C&S Finance Group LLC helps clients implement these critical safeguards; learn more at csfinancegroup.com.

The scope of federal enforcement actions in the state extends beyond real estate and SBA loan fraud. In May 2026, another New Jersey business owner was sentenced to 87 months in prison for a massive $172 million healthcare fraud and money laundering scheme involving kickbacks for durable medical equipment. According to prosecutors, the individual used sham contracts and offshore bank accounts to conceal the illicit proceeds.

Federal agencies are also actively pursuing cases that are still in earlier stages. The FBI recently announced the indictment of Ocean County resident Joseph DiValli for his alleged role in a large-scale mortgage fraud scheme that caused at least $2 million in losses. If convicted, DiValli faces a maximum potential penalty of 30 years in prison and a $1 million fine for each count.

Similarly, the IRS Criminal Investigation division has charged Cesar Humberto Pina, a real estate investor and online influencer known as “Flipping NJ,” with wire fraud, money laundering, and bribery. Pina is accused of defrauding dozens of investors out of millions of dollars. These charges carry maximum penalties of up to 20 years in prison per count.

These cases highlight a multi-agency effort, involving the Department of Justice, FBI, IRS, and even the U.S. Secret Service, to combat a wide spectrum of financial misconduct. In another recent case, the Secret Service announced a sentence of more than six years for Pranav Patel, a New Jersey man who acted as a money mule in an elder fraud scheme, laundering nearly $1.8 million taken from senior citizens.

Ultimately, a company's integrity is its most valuable asset. The short-term gains from a fraudulent loan are inevitably erased by long-term penalties, including imprisonment, crippling restitution payments, and irreversible damage to one's professional reputation. Building a business on a foundation of sound financial practices is the only sustainable path to success.

Federal prosecutors have indicated that these enforcement actions will continue, with several high-profile cases still moving through the courts. Restitution hearings for some of the convicted individuals, like Silber and Schulman, are still pending, and trial dates for indicted individuals like Cesar Pina have not yet been scheduled. Businesses and investors in the region should expect continued scrutiny from federal agencies focused on rooting out complex financial fraud.