A Baltimore County judge ruled Tuesday evening that Jason Walsh, the former CEO of ABC Capital, must pay more than $5 million to foreign investors who say he defrauded them after they agreed to buy Baltimore rental properties.

The judgment is the biggest hit yet to Walsh, whose Philadelphia-based company filed for bankruptcy as frustrated investors mounted complaints and homes in distressed neighborhoods of Baltimore fell further into disrepair.

“The truth is, what was presented in court over the last couple of days was the tip of the iceberg of what Mr. Walsh has perpetrated here in Baltimore and beyond,” said attorney Thiru Vignarajah, who represented the investors. “This is an important first step in bringing a measure of justice in light of the harm he has done to people who believed in the best of Baltimore.”

The Banner reported beginning in 2022 how Walsh’s company had sold more than 1,000 homes in distressed areas to investors across the globe, promising a hands-off process in which he would acquire the homes, fix them up, and then rent them out and maintain them.

But often the homes continued to lie vacant, with investors only realizing it once the bottom fell out of Walsh’s business. Some lawsuits have called the operation a Ponzi scheme.

The case heard this week, brought by a Turkish businessman who brought investors into the fold for ABC, involved transactions that weren’t even carried out by ABC Capital — investors wired money for properties, only to find out they had been sold to others instead.

The lawsuit focused on 11 properties, but Vignarajah presented evidence of fraud involving 75 total homes “to show the judge that this was not a mistake.”

Walsh has previously blamed a variety of factors, including the COVID-19 pandemic and unforeseen challenges in the real estate market. He represented himself during pretrial proceedings, then was a no-show for trial.

Following a two-day hearing, Circuit Court Judge Dennis M. Robinson Jr. ruled that Walsh must pay $5.6 million, including $4.2 million in punitive damages.

It’s unclear how investors will recoup payment from Walsh, who has been living in Aruba and continuing to dispense real estate advice. Previous judgements were wiped away following ABC’s bankruptcy declaration, but this week’s case was filed against Walsh individually.

“We’re celebrating victory today; making sure that this judgment is enforced is tomorrow’s work,” Vignarajah said.

The case heard this week in Baltimore County had also named a now-defunct title company, Castle Title, as a defendant. Title companies are supposed to oversee and complete transactions on behalf of the buyer and seller, safeguarding the interests of each.

The title company settled out of court. Vignarajah said his client was “satisfied with the terms of the settlement given the role that Castle Title played.”