Ryan K. Buchanan, U.S. Attorney | U.S. Attorney for the Northern District of Georgia
Elchonon “Elie” Schwartz has admitted guilt to wire fraud in a significant investment fraud case that affected over 800 investors, leading them to invest approximately $62.8 million, which Schwartz misappropriated for personal use. The investments were primarily intended for the Atlanta Financial Center, a proposed commercial real estate project on Peachtree Road.
"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," stated Acting U.S. Attorney Richard S. Moultrie, Jr. He emphasized the commitment of his office to protect investors from fraudulent individuals like Schwartz.
Sean Burke, Acting Special Agent in Charge of FBI Atlanta, remarked on the impact of such schemes: "Although investment fraud schemes are not violent crimes, they are just as destructive as they can destroy the livelihoods of entire families."
According to court details presented by Acting U.S. Attorney Moultrie, Schwartz operated a successful commercial real estate investment firm and began soliciting investments through CrowdStreet Marketplace starting May 2022 for the Atlanta Financial Center project in Georgia. He raised about $54 million from around 654 investors for this venture. Later that year, he also solicited investments for Lincoln Place in Miami Beach, Florida, raising approximately $8.8 million from 167 investors.
Despite agreements with CrowdStreet ensuring funds would be held in segregated accounts controlled by him and used solely for property investments, Schwartz diverted nearly all $62.8 million raised into personal accounts and unrelated ventures between June 2022 and June 2023.
The funds were used by Schwartz for various personal expenses including payrolls for his businesses, luxury purchases like watches, and stock market investments. In July 2023, corporate entities formed by Schwartz to manage these investor funds filed for Chapter 11 bankruptcy.
Schwartz faces up to 20 years imprisonment after pleading guilty to one count of wire fraud; sentencing is set for May 19, 2025 before U.S. District Judge Steven D. Grimberg.
The Federal Bureau of Investigation is handling the investigation with support from the Securities and Exchange Commission’s Division of Enforcement.
Assistant U.S. Attorney Kelly K. Connors and Trial Attorney Matthew F. Sullivan are prosecuting this case with former Assistant U.S Attorneys David O’Neal and Christopher Huber having contributed significantly during earlier stages.
For further inquiries please contact the U.S Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280 or visit http://www.justice.gov/usao-ndga.
