Point Breeze landlord to serve prison term

A Point Breeze landlord was sentenced Thursday to nearly three years in federal prison for stealing millions from Israeli investors in a real estate Ponzi scheme.

Golan Barak, 50, will serve 33 months in federal prison followed by three years of supervised release, U.S. District Judge Donetta Ambrose ruled during a 90minute sentencing hearing Thursday.

Barak also will have to pay restitution, in an amount still to be determined, to the victims he stole from, the judge decided.

A plumber by trade who owns seven businesses and controlled hundreds of properties in the region, Barak was indicted last year on nine counts of wire fraud following a federal investigation into his real estate dealings.

He pleaded guilty in May to one of those counts involving more than $1 million given him by one investor.

The FBI and the IRS said he persuaded sophisticated investors from Israel and other countries to fly to Pittsburgh to become partners with him in buying and flipping houses in the city and suburbs.

He told them they would be able to enter into 50-50 partnerships with him in buying houses and then either selling them or managing them for rental income through companies he created.

Investors, many of whom have prepared victim impact statements for the U.S. attorney, said he used their money to buy properties other than the ones specified in agreements or used it to pay off earlier investors.

In all, according to the FBI, Barak ripped off investors of more than $2 million.

On Thursday, Barak’s attorney, Komron Maknoon, argued that Barak’s business “got out of control” and said his client became overwhelmed and failed to fulfill his promises. Mr. Maknoon said Barak has been working to settle his disputes with investors and pay back the money he owed.

He argued that a prison sentence would hinder Barak’s efforts to repay those he defrauded.

“Would [the victims] be happier if he was in prison or would they be happier if they had their money back?” Mr. Maknoon said.

He also pointed to his client’s lack of prior criminal history and unique past.

Born in Israel, Barak served three years in the Israeli military and was shot in the stomach when he was 21 while he was on an intelligence mission, according to a sentencing memo filed by Mr. Maknoon.

Barak came to the United States in 2001 as an exchange student, moved to Boston and eventually became a naturalized citizen. He married Linda Gordon, whose mother, Nicky Gordon, was the first of five people to be killed in Richard Baumhammers’ racially and ethnically motivated rampage in Pittsburgh on April 28, 2000.

The family moved to Pittsburgh in 2012 to be closer to Ms. Gordon’s father.

During Thursday’s hearing, Assistant U.S. Attorney Greg Melucci rejected Mr. Maknoon’s suggestion that Barak was simply overwhelmed and said Barak knew exactly what he was doing, using the same method to defraud each victim.

He asked for Barak to be sentenced within the federal guideline of 33 to 41 months.

“There needs to be just punishment,” he said. “The victims are very angry. They’ve suffered.”

Judge Ambrose said she admired Barak’s past, his journey to the United States and his perseverance, but said she considered the crime to be “extremely serious.”

She said the advisory sentencing range was appropriate because it matched the seriousness of the crime. Barak will be allowed to selfreport to prison.