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New York man has been sentenced to 87 months in federal prison for defrauding hundreds of investors out of nearly $63 million. Elchonon "Elie" Schwartz, 46, was ordered to pay over $45 million in restitution after pleading guilty to wire fraud earlier this year. U.S. Attorney Theodore S. Hertzberg called Schwartz's actions "boundless greed," saying he abused the trust of investors to line his own bank accounts and purchase luxury items.

    Schwartz raised approximately $62.8 million from more than 800 investors through CrowdStreet Marketplace, with most funds earmarked for a large-scale commercial real estate complex in Atlanta. However, investigators say he transferred the money into personal and unrelated business accounts instead of using it for the advertised projects. Schwartz allegedly used investor funds to buy luxury watches, invest in stocks and options, and cover unrelated expenses.

    The case was investigated by the FBI with assistance from the Securities and Exchange Commission. Prosecutors say Schwartz's actions led to bankruptcy filings for corporate entities tied to the CrowdStreet investments in July 2023. The sentence reflects the government's commitment to holding fraudsters accountable for exploiting innocent investors.