INDIANAPOLIS (WISH) — A man from New Jersey has been formally charged by Marion County prosecutors for misusing renters funds, causing several Indianapolis apartment complexes to have utilities shut off.

Chaim “Chaikel” Puretz, 47, was charged with one count of corrupt business influence, and 12 counts of theft, both felonies and misdemeanors.

The Marion County Prosecutor’s Office said in a news release Monday that detectives investigated Puretz for almost two years. A probable cause affidavit obtained by News 8 says that from October 2019 to April 2022, four Indianapolis apartment complexes stopped paying Citizens Energy Group utility bills, causing the accounts to become delinquent and Citizens to turn off utilities to the complexes.

Those apartment complexes are Berkley Commons, 8201 Madison Ave.; Capital Place Apartments, 4100 Continental Court; Covington Square Apartments, 115 S. High School Road; and the Woods at Oak Crossing, 3120 Nobscot Drive.

Detectives spoke with multiple tenants at each complex. They told police that a monthly water fee was built into their rent as part of their leases. Alternatively, the complex was responsible for paying utilities, not the tenants.

Court documents say, that after the accounts became delinquent, Citizens shut off utilities to the apartments in September 2022. The Indianapolis city government then had to intervene and pay the water charges.

“They shouldn’t have had to go through this and what they had to endure is unspeakable because again they were doing the right thing,” said Ryan Mears, (D) Marion County Prosecutor. “We’re just talking about hardworking, everyday people who were paying their bills on time and they’re told ‘Hey your utilities might be cut off.’”

Investigators learned a man named Oron Zarum owned the four apartments, and that Zarum never controlled the bank accounts for the complexes.

After more investigation, detectives found that Puretz was the real owner of the four bank accounts. Detectives also learned that instead of using money paid by renters to cover utility bills, Puretz “funneled large amounts of money into other bank accounts also owned by Puretz.”

“What we’re alleging is it ultimately ended up with him,” Mears said. “So ultimately what you do have is the criminal action but also filed the civil forfeiture action as well to hopefully be able to be able to make the city and some of the individuals involved in this case whole.”

In total, investigators learned Puretz stole $1,638,038.86.

“It’s really disheartening for the individuals who were involved in this case who really had to endure a lot as other people reaped the financial benefits,” Mears said.

Prosecutors did not say if Puretz has been arrested but shared they are working to extradite him to Indianapolis. No word on when he will arrive.

News 8’s Danielle Zulkosky and photographer Kyle Fisher contributed to this report.

Statements

“In 2022, the City stepped in to pay $850,000 in water charges at several affordable housing properties, avoiding the mass eviction of hundreds of Indianapolis families. Families that had kept current with rent payments that included utilities had their lives thrown into upheaval through no fault of their own. I am grateful to the Marion County Prosecutor’s Office for the extensive legal work involved to bring today’s criminal charges. Let this serve as a warning to anyone who would threaten the homes of our most vulnerable neighbors: Your day in court is coming.”

Indianapolis Mayor Joe Hogsett, a Democrat

“A critical step in allowing Indianapolis to thrive is holding bad-acting landlords accountable. Two years ago, JPC Affordable Housing Foundation’s misuse of funds resulted in people losing access to necessities such as power and water, with some families even facing eviction.

Today’s criminal charges are a crucial step forward for tenant protections, but the state legislature must do more to prevent similar abuses. JPC properties have shown that there are loopholes in our ability to protect renters. Last year, I helped pass legislation allowing the court to appoint a receiver when a landlord incurs utility bills 60 days past due. That was a crucial victory, but there’s still so much to do. We need to make sure we have the tools to proactively go after bad actors in the future.” 

State Rep. Justin Moed (D-Indianapolis)