E
lie Schwartz, CEO of Nightingale Properties, faces an arraignment next week as details about a Department of Justice probe into his activities are set to be revealed. Federal charges brought by the DOJ will be presented in U.S. District Court for the Northern District of Georgia on December 4. The Justice Department and Schwartz have declined to comment on the matter.

    CrowdStreet, a commercial real estate investing platform, views the arraignment as a significant step towards holding accountable those responsible for fraudulent activity. Last year, CrowdStreet alleged that Schwartz swindled $54 million from investors who thought they were helping Nightingale Properties acquire and renovate properties in Atlanta's Buckhead neighborhood and Miami Beach.

    CrowdStreet had failed to require the funds raised to be placed in an escrow account, leading to millions of dollars going unaccounted for. The platform has since appointed an independent fiduciary to help recover the missing money. Schwartz reached a settlement with investors last October, agreeing to make $4 million quarterly payments, but has only made one payment so far and missed the second. Nightingale Properties has also defaulted on multiple loans.

    CrowdStreet remains committed to protecting investor trust and advocating for accountability and fairness in this ongoing matter.