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New York City businessman, Elchonon (Elie) Schwartz, 46, has been sentenced to 87 months in prison and ordered to pay $45 million in restitution for a massive fraud scheme involving the Atlanta Financial Center. Schwartz pleaded guilty in February to one count of wire fraud after convincing over 800 investors to send him $62.8 million, including $54 million intended for the office building on Peachtree Road.

    Instead of using the funds as promised, Schwartz diverted them into his personal bank account and used them to buy luxury items, invest in unrelated real estate ventures, and cover payroll expenses. "Schwartz's greed was boundless," said Theodore S. Hertzberg, interim U.S. attorney for the Northern District of Georgia. "He callously abused the trust of hundreds of investors to line his own bank accounts."

    The scheme involved a crowdfunding website, CrowdStreet Marketplace, which raised nearly $63 million from investors who were assured their funds would be segregated and used only for specific investments. Schwartz's sentence reflects the government's commitment to holding accountable those who exploit innocent investors through false representations.

    Schwartz was also sentenced to three years of supervised release after completing his prison term. The case was investigated by the FBI with assistance from the Securities and Exchange Commission's Division of Enforcement.