Medical management firm chief investment officer pleads guilty to $91.5M fraud

The former chief investment officer for Regent Medical Properties in Glen Rock, N.J., pleaded guilty March 16 to bank fraud conspiracy involving a $91.5 million commercial mortgage loan, according to the Department of Justice

According to court documents, Barton Schack, 65, of Ringwood, N.J., RMP's former chief investment officer, helped the company's founder, an unnamed co-conspirator, secure the loan by misrepresenting to the lender the occupancy status of certain properties put up as collateral. 

After the mortgage loan closed, Mr. Schack and the co-conspirator allegedly continued the scheme by concealing the actual financial status of the medical properties by submitting fraudulent financial statements to the loan servicer on a monthly basis. 

Mr. Schack is slated to be sentenced on June 22. He faces a maximum sentence of 30 years in prison and a $1 million fine. 

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