Elchonon (Elie) Schwartz has been sentenced to 87 months in federal prison for his involvement in a $62.8 million fraud scheme targeting investors of the Atlanta Financial Center. Schwartz was also ordered to pay over $45 million in restitution after diverting funds intended for commercial real estate investments for personal use, including luxury purchases.
"Schwartz’s greed was boundless," stated U.S. Attorney Theodore S. Hertzberg, highlighting the abuse of trust and exploitation of investors' reliance on false representations. Paul Brown, Special Agent in Charge of FBI Atlanta, added that the sentencing "underscores that those who exploit the trust of investors for personal gain will be held accountable."
The fraudulent activities began in May 2022 when Schwartz solicited investments through CrowdStreet Marketplace, promising to safeguard funds within segregated accounts and use them solely for property investments. Contrary to these promises, he misappropriated nearly all funds into personal accounts and unrelated ventures.
In July 2023, two corporate entities formed by Schwartz filed for bankruptcy after receiving investor funds from CrowdStreet. On February 12, 2025, Schwartz pleaded guilty to one count of wire fraud before being sentenced by U.S. District Judge Steven D. Grimberg on May 19, 2025.
The Federal Bureau of Investigation led the investigation with assistance from the Securities and Exchange Commission’s Division of Enforcement. The case was prosecuted by Assistant U.S. Attorney Kelly K. Connors and Trial Attorney Matthew F. Sullivan with support from former Assistant U.S. Attorneys David O’Neal and Christopher Huber.
For more information, contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.