Shepherd Smith Edwards and Kantas Investigates $63M in Investor Losses Involving CrowdStreet & Alleged Nightingale Fraud
Allow Our Seasoned Broker Investment Loss Recovery Lawyers To Help You Explore Your Legal Options
If you were an investor in either of the deals to purchase commercial real estate in Miami and Atlanta through Nightingale Properties and its CEO Elie Schwartz, you may have grounds for a claim seeking damages against CrowdStreet Capital. The brokerage firm allegedly connected investors to Nightingale, which is now accused of running an alleged investment scam that defrauded some 800 investors of around $63 million.
Investors’ money was supposed to be kept in escrow for real estate investment purposes. Instead, Schwartz allegedly misappropriated about $10M to purchase a position and stock options in First Republic Bank. He is also accused of funneling funds to his other entities, purchasing stock, and engaging in options trading.
Shepherd Smith Edwards and Kantas (investorlawyers.com) are representing Nightingale investors in recouping their investment losses. As an underwriter/placement agent/ broker-dealer with an online portal, CrowdStreet had a duty to make sure that investors’ funds were kept safe. Instead, the brokerage firm may have allegedly committed due diligence failures and neglected to properly vet these private commercial real estate offerings. Not only that but also there is no reason why Nightingale should have been able to take out investors’ funds for any reason other than for investing in real estate.
Suing CrowdStreet May Be The Best Way To Recoup Your Nightingale Investment Losses
While Nightingale has reportedly reached a tentative deal with investors—they are supposed to be repaid in quarterly installments of about $4M over the next three years—who knows whether those who have suffered serious losses will get back all of their money from this company. This is why it is so important that if you are a Nightingale investor you explore your other legal options. Such as potentially pursuing damages from CrowdStreet Capital. As a Financial Industry Regulatory Authority (FINRA) -registered brokerage firm, CrowdStreet owes a certain fiduciary duty to customers, including those that utilized its crowdfunding platform—not to mention that the alleged Nightingale scam is not the first time CrowdStreet has been accused of landing investors in an alleged real estate scheme.
The Texas-based broker-dealer helped invest $58M of investors’ money in two real estate funds involving MG Capital, which had claimed to raise more than $1B in two earlier funds that are now believed to have never existed. Not only that, but MG Capital reportedly promised investors 100% protection from loss—a definite red flag that should have tipped off CrowdStreet that these real estate funds were a bad bet. Many MG Capital investors were reportedly retail customers.
Why Work With Our Seasoned Real Estate Investment Fraud Attorneys
For over 30 years, Shepherd Smith Edwards, and Kantas have helped investors to pursue the damages they are owed due to broker misconduct or negligence. This includes claimants who have suffered losses in real estate funds, non-traded real estate investment trusts (non-traded REITs), real estate investment trusts (REITs), and other high-risk investments.
More than 90% of our clients have received full or partial financial recovery with our help.
Contact Us About Your Nightingale Real Estate Fund Losses and CrowdStreet
Call our team of Real Estate Investment Fraud Attorneys at (800) 259-9010 to request your free, no-obligation case assessment. You can also reach our Texas investment loss recovery attorneys in Houston at (936) 251-0033 or in Dallas at (214) 613-5306.