(Bloomberg) – Hundreds of regular investors who together put up $63 million to buy pieces of Atlanta and Miami commercial real estate have allegedly seen their funds disappear.
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Two deals orchestrated by CrowdStreet Inc., a real estate investment company that crowd-sources funds from relatively wealthy individuals, have fallen apart as investors’ money vanished from bank accounts earmarked to buy equity in buildings, according to bankruptcy court papers.
An independent manager brought in to look at how the deals went sour found millions of dollars of the crowdfunded cash ended up in accounts owned by Nightingale Properties, a firm CrowdStreet partnered with on the transactions, along with Nightingale’s chief executive officer, court papers show.
“When we became suspicious of potential financial misconduct, we alerted regulators and negotiated for the appointment of an independent manager,” a representative for CrowdStreet said in an emailed statement…
2023-07-18 17:18:33
Source from finance.yahoo.com
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