Elchonon (Elie) Schwartz has been sentenced to 87 months in federal prison and ordered to pay over $45 million in restitution for a fraud scheme involving more than 800 investors. Schwartz misled investors into providing approximately $62.8 million, including about $54 million intended for the Atlanta Financial Center, a commercial real estate project. Instead of using the funds as promised, Schwartz diverted them for personal use, purchasing luxury items.
"Schwartz’s greed was boundless," stated U.S. Attorney Theodore S. Hertzberg. "He callously abused the trust of hundreds of investors to line his own bank accounts, purchase expensive watches, and buy additional luxury items."
Paul Brown, Special Agent in Charge of FBI Atlanta, emphasized the impact of Schwartz's actions: "This 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 used a crowdfunding investment website, CrowdStreet Marketplace, to raise nearly $63 million from investors. He falsely assured them that their investments would be safeguarded in segregated accounts and used solely for designated projects.
Contrary to these assurances, Schwartz redirected most of the funds into his personal accounts and unrelated business ventures. The funds were used for luxury purchases and stock investments. By mid-July 2023, two corporate entities formed by Schwartz filed for bankruptcy.
On May 19, 2025, U.S. District Judge Steven D. Grimberg sentenced Schwartz to prison time followed by three years of supervised release and mandated restitution payment totaling $45,079,485.03. Schwartz had pleaded guilty to one count of wire fraud earlier this year.
The case was investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission’s Division of Enforcement. Assistant U.S. Attorney Kelly K. Connors and Trial Attorney Matthew F. Sullivan led the prosecution with support from former Assistant U.S. Attorneys David O’Neal and Christopher Huber.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.
