ATLANTA – A New York City man has pleaded guilty to running a massive investment fraud scheme involving a planned commercial real estate project in the Buckhead area of Atlanta.
Elchonon “Elie” Schwartz, 46, admitted his guilt on one count of wire fraud in federal court Wednesday and faces a maximum of 20 years in prison.
According to information presented in court, Schwartz began soliciting investments in the proposed Atlanta Financial Center in May 2022 and subsequently in a mixed-use building in Miami Beach, Fla. He ultimately raised $62.8 million from more than 800 investors.
However, before either real estate project closed, Schwartz diverted the funds to his personal bank account and accounts for other unrelated commercial real estate investments he controlled.
Schwartz spent the money, among other things, on luxury watches and stocks and options in a brokerage account. In July 2023, both of the corporate entities he formed to receive investments in the two projects filed for Chapter 11 bankruptcy.
“Seeking to do nothing more than pad his own bank accounts and buy expensive luxury items, Elie Schwartz betrayed hundreds of investors who sought the opportunity to invest in these commercial real estate projects,” said Richard Moultrie Jr., acting U.S. attorney for the Northern District of Georgia.
“This office is committed to protecting investors from individuals, like Schwartz, who defraud donors out of their hard-earned money and seek to prioritize their own greed at the expense of legitimate investors.”
Schwartz is scheduled to be sentenced in May.