Author Topic: Time for some proper due diligence/ independent auditing in our communities  (Read 73957 times)

Offline Euclid

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1060 on: September 11, 2023, 07:38:26 PM »
To clarify: that link I posted was from Feb 2020. Was just making the connection between that ad and his current "offering" (gelt page)

Offline Joel

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1061 on: September 12, 2023, 02:22:21 PM »
Are we gonna talk about the 18 million dollars mostly from frum people that was raised for Gparency which seems incredibly desperate for cash?
Run!! Last chance..
https://www.linkedin.com/posts/irazlotowitz_last-chance-to-join-this-round-you-my-activity-7107368856225996800-1HaK

Offline Euclid

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1062 on: September 12, 2023, 03:57:16 PM »
Feds are staging by Blue Claws stadium (Lakewood) now. Guess we'll find out of any arrests imminently.

Offline yoruel

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1063 on: September 12, 2023, 04:13:05 PM »
Are they looking for the above advertisers? :)

Offline Alexsei

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1064 on: September 12, 2023, 04:30:01 PM »


︽ R ≈ 0.19764 🔃 09/18

Offline yoohoo

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Offline Afrages6

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1066 on: September 12, 2023, 06:39:14 PM »
Run!! Last chance..
https://www.linkedin.com/posts/irazlotowitz_last-chance-to-join-this-round-you-my-activity-7107368856225996800-1HaK
This just makes me furious for a couple of reasons.

1. Hes trying to make it look like hes doing a 23.5 million dollar raise.. Im willing to bet hes not. 23.5 million would be the exact amount of money hes raised so far if he gets this round to 2 million. Coincidence?

2. He released a letter last week saying that they are on track for their goal of going public without releasing a single metric regarding revenue or cash burn. All he had to say was we are revolutionizing the real estate market. And now hes using that letter as a way to lure investors. Incredible.

3. 2 million dollars will keep him in business for 2 more months and then what?

Where are all the due diligence people who were screaming about syndicators now? Are people to scared to ask IZ a single question on LinkedIn?

Offline knowitall

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1067 on: September 12, 2023, 06:46:10 PM »
This just makes me furious for a couple of reasons.

1. Hes trying to make it look like hes doing a 23.5 million dollar raise.. Im willing to bet hes not. 23.5 million would be the exact amount of money hes raised so far if he gets this round to 2 million. Coincidence?

2. He released a letter last week saying that they are on track for their goal of going public without releasing a single metric regarding revenue or cash burn. All he had to say was we are revolutionizing the real estate market. And now hes using that letter as a way to lure investors. Incredible.

3. 2 million dollars will keep him in business for 2 more months and then what?

Where are all the due diligence people who were screaming about syndicators now? Are people to scared to ask IZ a single question on LinkedIn?
There are a number of reasons why a typical RE syndication is not comparable to Gparency.

Offline Afrages6

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1068 on: September 12, 2023, 06:51:10 PM »
There are a number of reasons why a typical RE syndication is not comparable to Gparency.
Im just saying all these investment/due diligence guys who were screaming about people not investing are quiet now.

Offline yoruel

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1069 on: September 12, 2023, 07:20:10 PM »
Im just saying all these investment/due diligence guys who were screaming about people not investing are quiet now.
I am willing to ask him questions.
What should i ask Ira?

Offline Afrages6

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1070 on: September 12, 2023, 07:31:34 PM »
I am willing to ask him questions.
What should i ask Ira?
How long this 2 million will last them?
How long until they break even?
How many contracts a month are they signing ?

Offline Realshlomo

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1071 on: September 12, 2023, 08:00:09 PM »
How long this 2 million will last them?
How long until they break even?
How many contracts a month are they signing ?
Should we invite him to this thread?

Offline S209

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1072 on: September 12, 2023, 08:38:57 PM »
Feds are staging by Blue Claws stadium (Lakewood) now. Guess we'll find out of any arrests imminently.
Any update?
Quote from: YitzyS
Quotes in a signature is annoying, as it comes across as an independent post.

Offline Moshe123

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Offline yuneeq

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Offline JMHO

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1075 on: September 12, 2023, 09:47:40 PM »
Should we invite him to this thread?
Maybe he's here already 8)

Offline Afrages6

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1076 on: September 13, 2023, 09:44:31 AM »
How long this 2 million will last them?
How long until they break even?
How many contracts a month are they signing ?
Realize how IZ wont answer these questions on LinkedIn and claim its because hes selling securities. Yet hes had no problem sharing these numbers in the past.

Offline Euclid

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1077 on: September 13, 2023, 10:10:08 AM »
Which one was this?



Offline yuneeq

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Re: Time for some proper due diligence/ independent auditing in our communities
« Reply #1078 on: September 15, 2023, 04:55:22 PM »
https://www.bisnow.com/national/news/capital-markets/elie-schwartz-invested-12m-of-crowdstreet-investor-cash-into-first-republic-before-it-failed-120691

Wow

ETA:
Nightingale CEO Put $12M Of CrowdStreet Investor Cash Into First Republic Stocks, Options Weeks Before It Failed
Nightingale Properties CEO Elie Schwartz took more than $10M of the cash he raised on CrowdStreet that he told investors would be used to buy a massive Atlanta office complex and instead bet it on the recovery of First Republic Bank before it failed.

 Placeholder
Bisnow/Mark Bonner

A First Republic Bank location in northern Manhattan

On March 23, Schwartz diverted $12M in crowdsourced investor funds that were to be used to buy the Atlanta Financial Center and instead purchased $6M in First Republic stock and another $6M in First Republic options, Eric Lee, the chief restructuring officer for the entities Schwartz created to raise the funds, told CrowdStreet investors during a webinar Friday.

The trades came on the heels of the collapses of Silicon Valley Bank and Signature Bank and as analysts were circling First Republic as another at-risk bank. First Republic shares had lost more than half their value in the two weeks before Schwartz bought the stock.

On May 1, the Federal Deposit Insurance Corp. seized First Republic after a run on deposits and promptly sold it to JPMorgan Chase, wiping out shareholders in the bank.

Those shares and options became almost worthless, Lee said on the webinar. That money is gone, unfortunately.

That Schwartz personally gambled on First Republic with investor funds was the most shocking revelation disclosed on Friday in the ongoing fiasco of the CrowdStreet missing millions, but it wasn't the only new information investors learned on the webinar, hosted by Anna Phillips, the independent manager appointed to take over the two entities Nightingale created to raise cash on the platform.

On the webinar, Lee, a forensic accountant and financial fraud expert, told investors Schwartz used $5.5M of the more than $50M in misappropriated funds on personal and business expenses, including on credit card payments and watches. Schwartz took $23M of CrowdStreet investor funds to pay dozens of separate third parties, Lee told the investors.

The saga began last year when Nightingale launched two crowdfunding campaigns on CrowdStreet, first raising $45M from retail investors to buy the 915K SF Atlanta Financial Center complex from Sumitomo Corporation of America for $182M, a price that would have represented a $78M loss.

Months later, Nightingale returned to the platform to raise equity to renovate a Miami Beach office building it already owned. It raised $8.8M toward that effort. More than 600 investors participated in the campaigns at a minimum commitment of $25K each, but neither deal closed.

In June, CrowdStreet told investors it couldn't account for where the funds were located they had gone directly into LLCs controlled by Schwartz rather than being placed in escrow and accused Nightingale of misappropriating the funds. Phillips was appointed as an independent manager to take control of the LLCs and pushed both entities into bankruptcy with the intent of recovering as much of the missing millions as possible.

Phillips said on the webinar that her team had reached a settlement with Nightingale on behalf of the two bankrupt entities. The advanced settlement talks were first disclosed earlier this month during a bankruptcy court status update.

We have reached a settlement in principle with Mr. Schwartz and Nightingale, she said. There is a substantial transaction that hopefully will occur that will also benefit the investors. This could be a very good result for our investors."

Phillips didn't reveal details of the potential settlement Friday, except that it would be the basis of a plan for both entities to exit bankruptcy. Phillips said the investors could be told about the details of the settlement as soon as Thursday. The deal would still be subject to an investor vote and court approval.

Phillips also told investors that she continues to cooperate with the Department of Justice and the Securities and Exchange Commission, as Bisnow previously reported. She added the FBI to the list of agencies she said were investigating Schwartz and Nightingale but said those conversations were independent of her pursuit of a settlement.

My job is getting your money back, not putting this guy in jail, she told investors.
« Last Edit: September 15, 2023, 05:03:43 PM by yuneeq »
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