Elchonon “Elie” Schwartz has admitted guilt to wire fraud in a large-scale investment fraud scheme, resulting in over 800 investors losing approximately $62.8 million. The funds were intended for the Atlanta Financial Center, a proposed commercial real estate project on Peachtree Road.
Acting U.S. Attorney Richard S. Moultrie, Jr., commented on the case: "Seeking to do nothing more than pad his own bank accounts and buy expensive luxury items, Elie Schwartz betrayed hundreds of investors who sought the opportunity to invest in these commercial real estate projects." He further emphasized the commitment of his office to protect investors from such fraudulent acts.
Sean Burke, Acting Special Agent in Charge of FBI Atlanta, stated: "Although investment fraud schemes are not violent crimes, they are just as destructive as they can destroy the livelihoods of entire families. Schwartz admitted to this complex scheme out of pure greed and will now face the steep consequences."
The court was informed that Schwartz managed a successful commercial real estate investment firm and began soliciting investments through CrowdStreet Marketplace starting May 2022 for an Atlanta project named "Atlanta Financial Center," raising around $54 million from 654 investors. In November 2022, he sought additional investments for a Miami Beach development called "Lincoln Place," gathering approximately $8.8 million from 167 investors. In total, about $62.8 million was raised through CrowdStreet for both ventures.
Despite agreements with CrowdStreet requiring funds be held in segregated accounts solely for each investment's benefit, Schwartz misappropriated nearly all funds between June 2022 and June 2023 by transferring them into personal accounts or unrelated business ventures under his control.
Schwartz utilized investor money for payroll expenses within his businesses, luxury purchases like watches, and stock market investments. By mid-July 2023, entities formed by Schwartz for receiving CrowdStreet investor funds filed for Chapter 11 bankruptcy.
Schwartz pleaded guilty to one count of wire fraud at age 46 and could face up to 20 years imprisonment based on United States Sentencing Guidelines considered by the Court but not binding.
Sentencing is set for May 19, 2025, before U.S. District Judge Steven D. Grimberg.
The Federal Bureau of Investigation is leading this investigation with assistance from the Securities and Exchange Commission’s Division of Enforcement. Prosecutors include Assistant U.S. Attorney Kelly K. Connors and Trial Attorney Matthew F. Sullivan; former Assistant U.S Attorneys David O’Neal and Christopher Huber also contributed significantly to this case's investigation and prosecution efforts.
For further details or inquiries regarding this case contact U.S Attorney’s Public Affairs Office via USAGAN.PressEmails@usdoj.gov or (404)581-6280; visit http://www.justice.gov/usao-ndga for additional information about Northern District Georgia’s office operations.