Elchonon “Elie” Schwartz, the former CEO of Nightingale Properties, was sentenced Monday to 87 months in federal prison after admitting to stealing millions from investors in a $63 million real estate crowdfunding scheme. A Georgia federal judge imposed the sentence, describing Schwartz as someone whose “addiction to optimism” ultimately unraveled his career and finances — and defrauded dozens of victims.
U.S. District Judge Steven Grimberg also ordered three years of supervised release and more than $45 million in restitution, exceeding the 78-month sentence recommended by prosecutors. Schwartz pled guilty earlier this year to a single count of wire fraud in connection with his misuse of funds raised to acquire commercial properties in Atlanta and Miami via the crowdfunding platform CrowdStreet.
Luxury Lifestyle Funded by Investor Money
According to federal prosecutors, Schwartz used the investor money not to develop real estate but to pay off credit card debt, acquire luxury watches, and support a lavish lifestyle. A court-appointed bankruptcy trustee revealed that Schwartz and his family are currently living in a $20 million Manhattan penthouse, which has so far evaded liquidation despite the victims’ efforts to recover lost funds.
Schwartz admitted to repurposing investor funds for personal and business expenses when the real estate deals failed. He framed his actions as an evolving lapse in judgment rather than premeditated fraud.
