The Securities and Exchange Commission (SEC) has brought new charges against Elchonon “Elie” Schwartz and his New York City-based commercial real estate investment firm Nightingale Properties LLC.
Earlier this month, Schwartz pleaded guilty in federal court for coordinating a fraud scheme that siphoned $62.8 million from more than 800 investors. The SEC’s new complaint charged Schwartz and Nightingale with violating the Securities Act of 1933 and Securities Exchange Act of 1934 for his role in defrauding investors by soliciting funds for commercial real estate deals in Atlanta and Miami Beach.
Schwartz used the investor funds to prop up other failing Nightingale commercial real estate projects, purchase watches and property, including a penthouse condominium, and engage in unprofitable trading in personal brokerage accounts.
Schwartz’s previous guilty plea to one count of wire fraud could result in a maximum penalty of 20 years in prison. Sentencing in that case is scheduled for May 19.
