Simon Gaugush Quoted in Bisnow: “‘It’s Flat-Out Fraud’: Victims Slam Elie Schwartz's Probation Bid After $63M CrowdStreet Scam”
Simon Gaugush was quoted in Bisnow, in an article titled “‘It’s Flat-Out Fraud’: Victims Slam Elie Schwartz's Probation Bid After $63M CrowdStreet Scam.” The article discusses the upcoming sentencing of Nightingale Properties CEO Elchonon “Elie” Schwartz, who defrauded more than 800 victims via a crowdfunding scam.
Schwartz pleaded guilty to one count of wire fraud, which carries a 20-year maximum sentence, though Gaugush said judges almost never issue sentences of that length. “He will be punished just as severely with one count of wire fraud as if he had hundreds of counts of wire fraud,” he said. “You can stack as many wire fraud counts as you can on this man, he’s never going to do 20 years.”
Gaugush added that an even greater factor in the judge’s sentencing discretion will be the claim made by several of the investors that they experienced “substantial financial hardship” because of their lost investments. If the judge believes this argument, Schwartz could issue a sentence longer than the prosecution is seeking. “That is so huge for this case. That is the hill the defendant will die on,” Gaugush said. “That’s what they’re going to be debating. This is going to be huge for them.”
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