Elchonon “Elie” Schwartz, a 46-year-old real estate executive from New York, has admitted to orchestrating a massive fraud scheme that misled over 800 investors and caused devastating financial harm. Schwartz, the head of a successful commercial real estate investment firm, convinced investors to trust him with a staggering $62.8 million. These funds were meant for two significant real estate projects: the Atlanta Financial Center in Georgia and Lincoln Place, a mixed-use building in Miami Beach, Florida.
But instead of honoring his promises, Schwartz used most of this money for his personal benefit. According to federal investigators, he spent investor funds on luxury items, such as expensive watches, and invested large sums into his personal stock trading accounts. His actions not only left the projects incomplete but also devastated the lives of hundreds of investors who had placed their faith in his vision.
The case is being called a significant breach of trust and a blatant act of greed by federal authorities.
The Fraud Scheme
The scheme started in May 2022, when Schwartz began seeking investments through a popular online real estate platform called CrowdStreet Marketplace. Through this platform, he pitched the Atlanta Financial Center project to investors, claiming it was a promising commercial real estate development. His pitch attracted 654 investors who contributed a total of $54 million.
Christina Chapman’s $17M Fraud Scheme Funneled Millions to North Korea
Later that year, in November 2022, Schwartz launched another campaign on CrowdStreet to fund a second project, Lincoln Place, a high-end building in Miami Beach. This effort raised $8.8 million from 167 investors. In both cases, he made specific promises to investors: the funds would be kept in separate bank accounts and used exclusively for the stated real estate projects. He also assured investors that their money would not be mixed with other funds or used for unrelated purposes.
However, Schwartz broke every one of these promises. Beginning in June 2022, Schwartz started transferring the money from the dedicated bank accounts to his personal accounts. He used these funds to pay for his company’s payroll, purchase luxury goods, and invest in stocks and options through his brokerage account. Over time, nearly all the $62.8 million raised for the two projects was siphoned off for his personal use.
By July 2023, the companies Schwartz had set up to manage these investments filed for bankruptcy, leaving investors with little hope of recovering their money.
Federal Investigation and Guilty Plea
Federal authorities, including the FBI and the Securities and Exchange Commission (SEC), launched an investigation into Schwartz’s actions. They discovered the extent of the fraud and found that Schwartz had systematically misled his investors. Acting U.S. Attorney Richard S. Moultrie, Jr. emphasized how Schwartz had “betrayed hundreds of investors who sought the opportunity to invest in commercial real estate projects.”
Sean Burke, Acting Special Agent in Charge of the FBI Atlanta, described Schwartz’s actions as a “destructive” crime that ruined families and livelihoods. Although investment fraud is not a violent crime, Burke stressed that it is equally harmful because it wipes out people’s hard-earned money and dreams.
On February 13, 2025, Schwartz pleaded guilty to one count of wire fraud in federal court. This charge carries a maximum penalty of 20 years in prison. While the final sentence will depend on various factors, the court will follow federal sentencing guidelines to determine the appropriate punishment.
Fraud Investigator Sentenced: Betraying Homeless Victims for Personal Gain
Schwartz’s sentencing hearing is scheduled for May 19, 2025, at 2:00 p.m. before U.S. District Judge Steven D. Grimberg. Until then, Schwartz remains under the scrutiny of federal authorities.
The Victims Left Behind
Schwartz’s actions have left a trail of financial devastation. Many of the 800+ investors trusted him with their savings, believing they were funding large, legitimate real estate projects. Instead, their money was used to fund Schwartz’s luxurious lifestyle and unrelated personal investments.
This case highlights the risks of investment fraud and the importance of vigilance when trusting individuals or platforms with significant sums of money. The investigation and prosecution involved extensive work by the FBI, the SEC’s Division of Enforcement, and federal prosecutors. Acting U.S. Attorney Kelly K. Connors and Trial Attorney Matthew F. Sullivan are leading the prosecution, with assistance from former prosecutors David O’Neal and Christopher Huber.
While Schwartz’s guilty plea marks a step toward justice, the damage caused to the lives of hundreds of investors will likely take years to heal. For now, the justice system has taken firm action to ensure Schwartz faces consequences for his greed-driven betrayal.
