Elchonon Schwartz and Nightingale Properties, LLC

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.