SEC v. Elchonon Schwartz; and Nightingale Properties, LLC, No. LR-26254, Northern District of Georgia (Feb. 21, 2025) — Press Release
raw: Elchonon Schwartz and Nightingale Properties, LLC
Elchonon Schwartz and Nightingale Properties, LLC, No. 1:25-cv-00716 (Feb. 21, 2025)
summary
Elchonon Schwartz and Nightingale Properties, LLC, were charged by the SEC for defrauding over 700 investors of $52 million through a fraudulent internet-based real estate funding platform.
paragraph
Elchonon Schwartz and his firm, Nightingale Properties, LLC, allegedly defrauded at least 700 investors of more than $52 million. The defendants raised over $60 million for specific real estate deals in Atlanta and Miami Beach but diverted funds to personal luxury items and failing projects. The SEC is seeking injunctions, disgorgement, and civil penalties for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
narrative
The SEC has charged Elchonon 'Elie' Schwartz and his firm, Nightingale Properties, LLC, with defrauding over 700 investors of more than $52 million. Between May 2022 and March 2023, the defendants used an internet-based platform to raise over $60 million, claiming funds would be used for real estate deals in Atlanta and Miami Beach. Instead, they misappropriated capital to support failing projects, fund personal brokerage trading, and purchase luxury assets including watches and a penthouse. The SEC is pursuing charges for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, seeking injunctions and disgorgement. Additionally, Schwartz faces a parallel criminal information for wire fraud filed by the Department of Justice in December 2024. This combined legal action aims to recover lost investor funds and penalize the fraudulent diversion of capital.
Classified unregistered-securities(confidence 100%). EDGAR detection: forms Form D/S-1· recall 41% / precision 30%. detection rule →
Parties
EstayTeton County Sheriff's Department
Keywords
schwartz nightingaleschwartznightingalenightingale propertiessecurities exchangesecelchonon schwartzexchange commissioncommercial realreal estatenorthern georgiasecuritiescommercialelchononproperties
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 3
- $60.00M $60 million $10M–$100M
- $52.00M $52 Million $10M–$100M
- $52.00M $52 million $10M–$100M
Entities 14
- person Elchonon Schwartz
- company elchonon schwartz and nightingale properties, llc
- scheme_term elchonon schwartz with wire fraud
- person justin jeffries
- person kristin w. murnahan
- person krysta m. cannon
- person Matthew F. McNamara
- person melissa j. mitchell
- person m. graham loomis
- person nekia hackworth jones
- organization Nightingale Properties, LLC
- agency Securities and Exchange Commission
- agency U.S. Attorney’s Office for the Northern District of Georgia
- agency u.s. department of justice fraud section
Triples 7
- Securities And Exchange Commission charged Elchonon Schwartz and Nightingale Properties, LLC
- Elchonon Schwartz and Nightingale Properties, LLC defrauded at least 700 investors of more than $52 million
- Elchonon Schwartz and Nightingale Properties, LLC raised more than $60 million in two separate offerings on an internet-based platform
- Elchonon Schwartz and Nightingale Properties, LLC falsely told investors they would use funds to purchase or recapitalize commercial real-estate deals in Atlanta, Georgia, and Miami Beach, Florida
- Elchonon Schwartz and Nightingale Properties, LLC used investor funds to prop up failing projects, purchase watches and property including a penthouse condominium, and engage in unprofitable trading
- Securities And Exchange Commission charged Elchonon Schwartz and Nightingale Properties, LLC with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
- U.S. Attorney's Office for the Northern District of Georgia and Fraud Section of the U.S. Department of Justice charged Elchonon Schwartz with wire fraud
PDF (from attached: complaint)
Text layers
Extracted body text (2,524c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26254 / February 21, 2025 Securities and Exchange Commission v. Elchonon Schwartz and Nightingale Properties, LLC, No. 1:25-cv-00716 (N.D. Ga. filed Feb. 12, 2025) SEC Charges New York-Based Commercial Real Estate Firm and its Owner with Using an Internet Funding Platform to Steal Over $52 Million from Investors Nationwide The Securities and Exchange Commission announced charges today against Elchonon “Elie” Schwartz, a resident of New York, New York, and his New York-based, privately held commercial real estate investment firm, Nightingale Properties, LLC, with defrauding at least 700 investors of more than $52 million. The SEC’s complaint alleges that, from May 2022 through March 2023, Schwartz and Nightingale raised more than $60 million in two separate offerings conducted on an internet-based platform that connects investors with commercial real-estate investment opportunities. According to the complaint, Schwartz and Nightingale falsely told investors that they would use their funds to either purchase or recapitalize two specific commercial real-estate deals in Atlanta, Georgia, and Miami Beach, Florida. The SEC alleges that, in reality, Schwartz and Nightingale used 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. The SEC's complaint, filed in the United States District Court for the Northern District of Georgia, charges Schwartz and Nightingale with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks injunctions, disgorgement, and civil money penalties. In a parallel action, in December 2024, the U.S. Attorney’s Office for the Northern District of Georgia and the Fraud Section of the U.S. Department of Justice filed a criminal information charging Schwartz with wire fraud. The criminal information is pending. The SEC’s investigation was conducted by Melissa J. Mitchell and Krysta M. Cannon in the Atlanta Regional Office. It was supervised by Matthew F. McNamara, Justin Jeffries, and Nekia Hackworth Jones. The SEC’s litigation will be led by Kristin W. Murnahan and supervised by M. Graham Loomis. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Northern District of Georgia and the Fraud Section of the U.S. Department of Justice.
OCR text (2,524c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26254 / February 21, 2025 Securities and Exchange Commission v. Elchonon Schwartz and Nightingale Properties, LLC, No. 1:25-cv-00716 (N.D. Ga. filed Feb. 12, 2025) SEC Charges New York-Based Commercial Real Estate Firm and its Owner with Using an Internet Funding Platform to Steal Over $52 Million from Investors Nationwide The Securities and Exchange Commission announced charges today against Elchonon “Elie” Schwartz, a resident of New York, New York, and his New York-based, privately held commercial real estate investment firm, Nightingale Properties, LLC, with defrauding at least 700 investors of more than $52 million. The SEC’s complaint alleges that, from May 2022 through March 2023, Schwartz and Nightingale raised more than $60 million in two separate offerings conducted on an internet-based platform that connects investors with commercial real-estate investment opportunities. According to the complaint, Schwartz and Nightingale falsely told investors that they would use their funds to either purchase or recapitalize two specific commercial real-estate deals in Atlanta, Georgia, and Miami Beach, Florida. The SEC alleges that, in reality, Schwartz and Nightingale used 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. The SEC's complaint, filed in the United States District Court for the Northern District of Georgia, charges Schwartz and Nightingale with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks injunctions, disgorgement, and civil money penalties. In a parallel action, in December 2024, the U.S. Attorney’s Office for the Northern District of Georgia and the Fraud Section of the U.S. Department of Justice filed a criminal information charging Schwartz with wire fraud. The criminal information is pending. The SEC’s investigation was conducted by Melissa J. Mitchell and Krysta M. Cannon in the Atlanta Regional Office. It was supervised by Matthew F. McNamara, Justin Jeffries, and Nekia Hackworth Jones. The SEC’s litigation will be led by Kristin W. Murnahan and supervised by M. Graham Loomis. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Northern District of Georgia and the Fraud Section of the U.S. Department of Justice.