In a filing dated September 9, 2026, Ameritrust Mortgage Corporation sued Eluzer Gold, Benjamin Eidlisz, and Shraga Chaim Lerner, alleging they orchestrated a scheme that inflated the value of 90 Baltimore homes to secure more than $14 million in DSCR loans.
A week later, RCN Capital and Commercial Lender filed a separate lawsuit claiming losses of $10 million on 59 properties purchased between 2023 and 2024.
The defendants used shell companies to move homes between entities, relying on appraisals that overstated values through manipulated photographs and false descriptions, according to the complaints.
DSCR loans evaluate a property's rental income against debt; the plaintiffs argue that the inflated valuations exposed lenders to sudden defaults when borrowers abandoned the properties.
Baltimore's housing crisis, marked by vacant row houses and aging infrastructure, could worsen if foreclosed homes linger unoccupied, affecting neighboring properties and deterring legitimate rehabilitation.
The U.S. District Court for the District of Maryland will set a pre‑trial conference for December 1, 2026, with a trial scheduled for February 2027, while federal investigators probe the broader scheme.