Richard S. Moultrie, Jr. Acting United States Attorney for the Northern District of Georgia | U.S. Attorney for the Northern District of Georgia
Elchonon (Elie) Schwartz, head of a commercial real estate investment firm, has been sentenced to 87 months in federal prison. He is also required to pay over $45 million in restitution for defrauding more than 800 investors of approximately $62.8 million. The funds were initially intended for the Atlanta Financial Center, a proposed commercial real estate complex.
"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, remarked on the case: "This sentencing underscores that those who exploit the trust of investors for personal gain will be held accountable." Brown noted that Schwartz's actions resulted in significant financial harm to many individuals.
Beginning in May 2022, Schwartz engaged in fraudulent activities targeting commercial real estate investors through CrowdStreet Marketplace, a crowdfunding investment website. Through this platform, he raised nearly $63 million from investors for projects including a large real estate complex in Atlanta and a mixed-use building in Miami Beach.
Contrary to his promises to safeguard investor funds within segregated accounts and not commingle their money, Schwartz diverted these funds for personal use. He used them to buy luxury items such as watches and invested them in stocks and options via his brokerage account. The misappropriated funds also covered payroll expenses for unrelated businesses he controlled.
In mid-July 2023, two corporate entities formed by Schwartz filed for bankruptcy after receiving funds from CrowdStreet investors.
On May 19, 2025, U.S. District Judge Steven D. Grimberg handed down Schwartz's sentence along with three years of supervised release post-imprisonment and ordered him to pay restitution totaling $45,079,485.03 following his guilty plea to one count of wire fraud on February 12, 2025.
The Federal Bureau of Investigation led the investigation into this case 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 prosecuted the case with former Assistant U.S. Attorneys David O’Neal and Christopher Huber providing substantial support during both investigation and prosecution phases.
For more information regarding this case or related inquiries contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or call (404) 581-6280. Additional details are available on the U.S. Attorney’s Office for the Northern District of Georgia's website at http://www.justice.gov/usao-ndga.
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