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Scandal has rocked the real estate crowdfunding industry over the past month, after Nightingale CEO Elie Schwartz was accused of walking away with tens of millions raised from small-time investors on the CrowdStreet platform.
It’s a black eye for the industry — which has only existed for about a decade — and it has prompted some of CrowdStreet's competitors to soothe their own customers by reassuring them they are more protected from possible fraud than the hundreds of investors who lost money by investing in Nightingale deals through CrowdStreet.
"This has been a challenging few weeks in the online real estate investing realm," RealtyMogul told investors in a letter published on Reddit last month. "While we have no comment on [the Nightingale] incident, we are saddened and concerned whenever investors in our…
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