Schwartz seeking to sell property from behind bars
May 6—Early last week, a federal judge signed off on an agreement allowing Rueben Schwartz to sell off three pieces of property prosecutors were seeking to force Schwartz to forfeit as part of his ongoing criminal case.
The three properties, consist of a pair of properties on Underridge Road, one of which is vacant and the other with a single-family home on the property, and the Port District Beverage property, at 988 Harbor Street in Conneaut.
Schwartz is permitted to sell the properties, with any proposed realtor or auctioneer who would facilitate the sale of the properties, and their fees, to be approved by the U.S. Attorney's Office. The agreement requires Schwartz to notify the USAO of any offer received, including the proposed sale amount, net proceeds of the sale, and the identity of the person purchasing the property.
Schwartz will not take any steps to reduce the value of the properties, and the USAO will have final say on whether or not the sales will be approved, under the agreement.
The proceeds from the sale will be held in escrow by the U.S. Marshal's Service pending the conclusion of the case.
Schwartz, a Conneaut businessman, was arrested in May 2022 and indicted on one count of conspiracy to launder monetary instruments. He was accused of conspiring with Marc Mahoney to conduct cash purchases of properties in Conneaut, using the proceeds from the distribution of controlled substances, according to the indictment.
In December 2022, Schwartz was indicted again, this time charged with a variety of crimes related to a fire that destroyed the former Golden Anchor building. The indictment claims that Schwartz prepared the building for the fire by covering the windows and stacking flammable materials against the walls, then had a conspirator use a directional heater to set fire to the building.
Schwartz allegedly then submitted insurance claims totaling $1.14 million for the construction of a new beverage drive-thru business.
The superseding indictment charged Schwartz 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 seeks forfeiture of $15,000 in cash seized from Schwartz's home in February 2022, along with the three properties he is currently seeking to sell.
Schwartz is currently in custody pending trial. Prosecutors successfully argued that he was a danger to the community, citing threats to witnesses and law enforcement.
A jury trial is scheduled for May 28.
In a motion filed in January of this year seeking to delay an upcoming trial date, Schwartz's attorneys said the two sides were working toward a plea agreement, but there were still outstanding issues that needed to be resolved.
