The CEO of Nightingale Properties once boasted a $10B commercial real estate portfolio. His next move could be to a federal prison.
Elie Schwartz was scheduled to make a $3M payment on April 1, which he had not done twelve days later.
The CEO of Nightingale Properties is scheduled to be sentenced by U.S. District Court Judge Steven Grimberg on May 19.
The Nightingale Properties CEO pleaded not guilty earlier this month to felony wire fraud over his role in a $54M embezzlement scandal.
The Nightingale Properties CEO pleaded guilty to wire fraud in February.
Schwartz owes $55M, but a judgment has also been issued against him for more than $10M in a separate lawsuit, Bisnow can first report.
Schwartz is awaiting sentencing for defrauding investors on the real estate crowdfunding platform CrowdStreet.
CrowdStreet's special fiduciary is holding off on disbursing the money until there is more clarity to Schwartz's ability to pay future installments.
The arraignment, set for Dec. 4 in Atlanta, is the first time the DOJ is taking official action against Schwartz.
The charge accounts for a small fraction of the money Schwartz allegedly embezzled from CrowdStreet investors.
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