Judge to Elie Schwartz: Leave Your UWS Penthouse

A bankruptcy judge ordered Nightingale chief executive officer Elie Schwartz to vacate his apartment at 1 West End Avenue in Lincoln Square, Bisnow reported. The penthouse unit is one of the assets a trustee is looking to liquidate to repay jilted investors, as the executive awaits sentencing for the CrowdStreet scandal.

Though the trustee requested the court-ordered eviction last month, Schwartz and his family are still living there, according to the trustee, despite not having permission and not paying the rent required by a settlement.

He and his family will have 30 days to leave the pad.

Schwartz listed the apartment in June for $19 million, but pulled it off the market in the fall. Prospective buyers will be allowed to see the four-bedroom, 6,000-square-foot unit as trustee Anna Phillips looks to sell. Schwartz is entitled to a 10 percent cut of the proceeds generated from a sale.

Last month, Schwartz pleaded guilty to wire fraud for his role in a multimillion-dollar crowdfunding scheme. His actions caused 800 investors to send nearly $63 million in investments that Schwartz ultimately diverted for his own use, according to prosecutors. The scandal erupted in the summer of 2023 when an independent manager held a webinar for investors, revealing most of their money had been misappropriated.

Schwartz settled with investors in October 2023. As part of the settlement, he agreed to pay $54 million in quarterly installments by selling off a Miami Beach office property and placing liens on other assets. By the second payment, however, he was already in default.

Sentencing is set for May 19. Schwartz faces a maximum sentence of 20 years in prison.

After the guilty plea, the Securities and Exchange Commission announced new charges against Schwartz, echoing the Department of Justice’s case.

The SEC is seeking injunctions, disgorgement and civil penalties against Schwartz. It is also looking to permanently ban Schwartz from directly or indirectly participating in securities offerings.

— Holden Walter-Warner