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New York businessman has been sentenced to 87 months in prison and ordered to pay over $45 million in restitution for his role in a major fraud scheme targeting investors in Atlanta and Miami. Elchonon "Elie" Schwartz, 46, was found guilty of wire fraud after using the crowdfunding platform CrowdStreet Market to raise over $62.8 million from hundreds of investors.

    Between May 2022 and July 2023, Schwartz used the funds for personal expenses, including luxury watches and stock investments, rather than securing them in separate bank accounts as promised. He also used the money to cover payroll expenses unrelated to the investments. The two corporations he created to receive the funds eventually filed for Chapter 11 bankruptcy.

    Schwartz pleaded guilty to one count of wire fraud in February, with prosecutors describing his actions as driven by "boundless greed." U.S. Attorney Theodore S. Hertzberg stated that Schwartz's sentence reflects the office's commitment to holding accountable those who exploit innocent investors through false representations. The FBI Atlanta Field Office led the investigation into the case.