Commercial real estate firm head pleads guilty in $62M fraud scheme

Ryan K. Buchanan, U.S. Attorney | U.S. Attorney for the Northern District of Georgia

Elchonon "Elie" Schwartz has pleaded guilty to wire fraud in a significant investment fraud case involving over 800 investors and approximately $62.8 million. The funds, which were meant for the Atlanta Financial Center project on Peachtree Road, were misused by Schwartz for personal expenses.

Acting U.S. Attorney Richard S. Moultrie, Jr. commented on the case: “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.” He emphasized the office's commitment to protecting investors from such fraudulent schemes.

Sean Burke, Acting Special Agent in Charge of FBI Atlanta, noted the impact of such crimes: “Although investment fraud schemes are not violent crimes, they are just as destructive as they can destroy the livelihoods of entire families."

The court was informed that Schwartz operated a commercial real estate investment firm and began soliciting investments through CrowdStreet Marketplace in May 2022 for two major projects: Atlanta Financial Center and Lincoln Place in Miami Beach, Florida. In total, he raised about $62.8 million but diverted nearly all of it for personal use before either project was completed.

Schwartz used investor funds for various personal expenditures including payroll expenses for his businesses, luxury watches, and stock investments. By mid-July 2023, entities formed by Schwartz filed for Chapter 11 bankruptcy.

Facing a maximum penalty of 20 years imprisonment after pleading guilty to one count of wire fraud, sentencing is set for May 19, 2025. The Federal Bureau of Investigation led the investigation with assistance from the Securities and Exchange Commission’s Division of Enforcement.

The prosecution team includes Assistant U.S. Attorney Kelly K. Connors and Trial Attorney Matthew F. Sullivan with previous contributions from former Assistant U.S. Attorneys David O’Neal and Christopher Huber.

For further details or inquiries contact the U.S. Attorney’s Public Affairs Office via email at USAGAN.PressEmails@usdoj.gov or phone at (404) 581-6280.