CrowdStreet Fraud Concerns Grow in Nightingale Fiasco

Fraud concerns are growing in connection with the Nightingale investment firm’s handling of investor funds. We just reported on the disappearance of millions of dollars raised on the CrowdStreet platform for two Nightingale deals. And now, CrowdStreet is worried about the management of a Nightingale office tower in Chicago, which was also partially paid for by CrowdStreet investors.   In a previous podcast, we reported that Nightingale is accused of misappropriating more than $50 million that investors pumped into two high-end properties in Atlanta and Chicago. The deals never closed, and when the money went missing, CrowdStreet recommended the appointment of an independent manager. Shareholders agreed and hired Anna Phillips. She then placed the entities created for those deals into bankruptcy to help track down the money.   Now CrowdStreet is taking a closer look at the Nightingale campaigns and wants to put Phillips in control of the Chicago property. That’s after a request for audited financial records went unanswered.   But in this case, putting an independent manager in charge is more complicated because the Chicago office tower is an operating asset with equity investors who are not connected to CrowdStreet. There’s also an ownership transfer to deal with and several loans...   This is why I've decided to create a master course on development, that will be helpful for both investors and developers. So many syndications require development of some kind, and it's important that investors understand how to analyze the deal. It's also going to be valuable for developers because the courses will be taught by my developer partners. You can find out more at GrowDevelopments.com.   Thanks for listening!   List: 1 - https://www.bisnow.com/chicago/news/office/crowdstreet-seeks-takeover-of-another-nightingale-asset-after-landlord-goes-dark-119919   2 - https://realwealth.com/category/real-estate-due-diligence/