𝐇𝐨𝐰 𝐭𝐨 𝐀𝐯𝐨𝐢𝐝 𝐆𝐞𝐭𝐭𝐢𝐧𝐠 𝐒𝐜𝐚𝐦𝐦𝐞𝐝 𝐋𝐢𝐤𝐞 𝐭𝐡𝐞 𝐄𝐥𝐢𝐞 𝐒𝐜𝐡𝐰𝐚𝐫𝐭𝐳 𝐃𝐞𝐛𝐚𝐜𝐥𝐞 Elie Schwartz, CEO of Nightingale Properties, gave real estate investors a $63M another lesson in fraud—and not the kind you want to learn from. What Happened? Schwartz raised $54M on CrowdStreet for an Atlanta office deal and $8.8M for a Miami Beach project—neither closed. Instead of holding funds in escrow, the money went straight into his accounts. He spent millions on luxury watches, bank stocks (that tanked), and payroll for other properties. When investors demanded refunds, the money was already gone. Now, He’s Paying the Price: 🚨 Pled guilty to wire fraud—facing up to 20 years in prison. 🚨 Owes investors $62.8M—but has no clear way to pay it back. 🚨 His assets (penthouse, mansion) are up for grabs—but how much value remains is uncertain. How Investors Can Protect Themselves ✅ Escrow, Always – Never invest in a deal where funds go directly to the sponsor. Demand third-party escrow controls. ✅ Follow the Money – Require independent audits and transparency on where the money is going. ✅ Vet the Sponsor, Not Just the Pitch – If a deal sounds great, dig deeper. Who controls the cash? Where’s the real proof of funds? ✅ Make Platforms Accountable – CrowdStreet allowed this to happen without verifying fund security. Investors should demand stricter oversight from crowdfunding platforms. Schwartz’s investors will never get their time back, and many may not recover their money. The best way to avoid fraud? Make sure your cash is protected before you wire it—not after it disappears. https://lnkd.in/eFGvPptS