Schwartz charged in Golden Anchor fire

Dec. 19—A superseding indictment was filed against Rueben Schwartz in federal court last week, charging him with a variety of crimes relating to the fire that destroyed the Golden Anchor in Conneaut in February of 2021.

In the indictment, Schwartz was charged with six counts of wire fraud, four counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of use of fire in commission of a felony, one count of destroying or damaging property used in interstate commerce, one count of conspiracy to use fire in commission of a felony, one count of conspiracy to destroy or damage property used in interstate commerce, ten counts of engaging in monetary transactions in criminally derived property, and one count of money laundering conspiracy.

The indictment accuses Schwartz and an unnamed conspirator of planning to use a torpedo heater to set fire to the former Golden Anchor, located at 1003 Harbor Street. In preparation, stacks of flammable materials were placed inside the building, and holes cut for windows were sealed to prevent bystanders from seeing smoke from the fire, according to the indictment.

The conspirator used the heater to set fire to the building on Feb. 8, 2021, when Schwartz planned to be out of town, and Schwartz submitted an insurance claim for the destruction of the building, according to the indictment.

The indictment claims Schwartz misled investigators from an insurance company, causing them to believe the fire had been accidental. It also accused Schwartz of acquiring estimates and quotes for goods and services and altering them to appear that that they had been paid. The altered documents were then used to mislead the insurance company about the extent and cost of renovations undertaken on the Golden Anchor building to increase the payout from the company, according to the indictment.

Schwartz is also accused in the indictment of misleading an investigator from the State Fire Marshal's Office, claiming that a significant amount of work on the business that was to occupy the building was finished. Limited renovations and repairs had been done to the building, according to the indictment.

The indictment states that Schwartz sent a number of emails to his insurance company that included fraudulent quotes and invoices. Schwartz received the maximum available payout from his insurance policy, $1,153,347.98, according to the indictment.

He is accused of using that money to benefit his business, including using it to pay off debts on other properties owned by the business in the area.

Schwartz is also accused of having submitted documentation of expenses for the construction of a replacement business across the street, what is now Port District Beverage.

In March of 2022, Schwartz is accused of causing a lumber company to issue an invoice for just over $100,000 for lumber and related materials, then canceling the invoice approximately four hours later, and submitting the initial invoice to his insurance company 11 days later as evidence of costs for the construction of Port District Beverage, according to the indictment.

Since the various emails of quotes and invoices used interstate wire communications, they constitute wire fraud, according to the indictment. Checks mailed to Schwartz based on those fraudulent claims constitute mail fraud, according to the indictment.

The indictment accuses Schwartz of using the funds from the insurance checks to unlawfully pay off debts, purchase property on Underridge Road, and pay for work on Port District Beverage.

Prosecutors are seeking the forfeiture of $15,000 in cash seized from Schwartz in February, Port District beverage and 183.6 acres of land and a home purchased by Schwartz on Underridge Road, according to the indictment.

Schwartz is set to be arraigned on the superseding indictment on Wednesday, according to court records.

Schwartz was previously indicted in May on one count of conspiracy to launder monetary instruments. He was accused of knowingly accepting money from drug sales in exchange for a pair of properties in Conneaut, according to the initial indictment.

He is being held pending trial after prosecutors successfully argued that he was a threat to the community, with a witness claiming Schwartz offered a person $100,000 to kill a member of the Conneaut Police Department.