Let's count the sins here
- Misrepresented sponsor's size - "$10B enterprise sponsor" is how it described Elie Schwartz in the OM
- Did not inform investors about Nightingale's prior defaults/foreclosures
Most egregiously: DID NOT hold the funds in escrow
In the latest episode of The Promote Podcast, we riff on CrowdStreet's culpability in what is thought of as the biggest ever CRE crowdfunding scam. "“It’d be like if Patek Philippe set up shop on a cart on Canal Street, walked away for 2 hours, and then went, ‘my God, we got robbed!’” ⌚️ is how my co-host described their role here.
What do you guys think? Should it be done after this? Class-action plaintiffs certainly think so.
In the pod, we also riff on how CMBS is getting into development deals, and why LifeCos are pumping up the volume and ambition. As always, feedback is appreciated!
Listen on Apple here or Spotify here.
Being involved with them in the past, I truly think there is more to the story with the scam. Although, no doubt, they did fuck up on relinquishing funds.
Good luck on the podcast! We need more quality content in the space.
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