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Real Estate Investor Headed to Prison in Atlanta Fraud Scheme

Elie Schwartz, CEO of Nightingale Properties, was given a federal prison term of just over seven years on May 20, 2025, in Atlanta for masterminding a major real estate fraud scheme involving investors from CrowdStreet.
Schwartz pleaded guilty in February 2023 to wire fraud after raising nearly $63 million from over 800 investors for promised property deals that were never completed.
He diverted about $54 million, intended for the Atlanta Financial Center, to luxury purchases, personal investments, and unrelated ventures, breaching investor trust and escrow agreements.
Judge Grimberg described the fraud as motivated by greed, ordering Schwartz to pay $45 million restitution and serve 87 months plus three years supervised release.
Victims expressed disappointment in the sentence as lenient, while CrowdStreet and federal officials emphasized their commitment to preventing future harm by fraudsters like Schwartz.

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Georgia Public Broadcasting

+3 Reposted by 3 other sources

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Real estate investor headed to prison in Atlanta fraud scheme

3 days ago·Georgia, United States

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Jewish Press

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Haredi Businessman Gets 6.5 to 8 Years in Fraud Case, Ordered to Pay Victims $45 Million

“Schwartz’s greed was boundless. He callously abused the trust of hundreds of investors to line his own bank accounts.”

3 days ago

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The Georgia Sun

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Boundless Greed: New York Real Estate Investor Jailed For Fraud Scheme In Buckhead

The head of a commercial real estate investment firm has been sentenced to 87 months in prison and ordered to pay $45 million in restitution in a fraud scheme involving the Atlanta Financial Center in Buckhead. Elchonon (Elie) Schwartz, 46, of New York City pleaded guilty in February to one count of wire fraud. Schwartz […] The post Boundless Greed: New York Real Estate Investor Jailed for Fraud Scheme in Buckhead appeared first on The Georgia S…

4 days ago

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Ynet News

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New York Hasidic developer sentenced to 7 years in prison for real estate fraud

Elchonon 'Elie' Schwartz defrauded over 800 investors out of $62.8 million through fake commercial property deals and used the funds for luxury purchases

4 days ago·Tel Aviv-Yafo, Israel

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kikar.co.il

Defrauded Investors of Approximately $63 Million: Haredi Sentenced to Seven Years in Prison.

New York City ultra-Orthodox man Elchanan (Eli) Schwartz, 46, was sentenced to seven years and three months in federal prison after pleading guilty to a felony fraud charge of $63 million. According to authorities, Schwartz raised the money from more than 800 unsuspecting investors, making false promises about luxury real estate investments – but in reality used the money for personal purposes. He promised to invest most of the money – $54 milli…

4 days ago

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thecentralgeorgian.com

Atlanta Financial Center Fraudster Sentenced to Over 7 Years in Prison

Elchonon (Elie) Schwartz, 46, of New York, New York, has been sentenced to 87 months in prison and ordered to pay over $45 million in restitution for a massive wire fraud scheme that defrauded more than 800 investors of approximately $62.8 million. The funds, including about $54 million earmarked for the Atlanta Financial Center, a planned commercial real estate complex, were instead diverted by Schwartz for his personal use and luxury purchases…

4 days ago·Georgia, United States

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