Conneaut Businessman Sentenced for Arson and Money Laundering Scheme

In a shocking turn of events, a Conneaut businessman has been sentenced to over four years in prison for his involvement in a complex scheme that included burning down a restaurant for insurance money and laundering a major drug dealer's cash. The case highlights the lengths some individuals will go to in pursuit of financial gain, often at the expense of ethical and legal boundaries.

Uncovering a Web of Deceit and Criminality

Burning Down for Profit

Rueben Schwartz, a 52-year-old Conneaut businessman, has admitted to conspiring to burn down the former Golden Anchor restaurant in February 2021. Schwartz had purchased the building for $130,000 and then taken out a $1.3 million insurance policy, indicating his intention to profit from the destruction of the property. According to prosecutors, Schwartz made minor repairs to the building to make it appear that he was legitimately renovating it, but in reality, he had plotted with others to have the building set ablaze when he was out of town, in an effort to make the incident seem less suspicious.Schwartz's actions were driven by his realization that his initial renovation plans would not be profitable. He then proceeded to lie to insurance investigators about the cause of the fire and falsified documents to make it appear as though he had spent more money on the building's rehabilitation than he actually had. The insurance company ultimately paid Schwartz $1.1 million, which he then used to kickstart the construction of a new business venture, a drive-through called Port District Beverage.

Laundering Drug Money

In addition to the arson scheme, Schwartz was also involved in a separate money-laundering operation. He sold two properties to Marc Mahoney, a former recycling plant manager who had turned to the cocaine trade. Mahoney paid Schwartz $110,000 for a building that used to house the Crispy Biscuit on Park Avenue and another that formerly housed a thrift store. However, on official paperwork, the duo claimed that Mahoney had paid $360,000 for the properties, effectively laundering the excess $250,000 in drug money.Mahoney was later arrested in connection with a cocaine pipeline that stretched from Mexico to Cleveland, and federal agents seized $2.4 million in cash from his home. Mahoney was sentenced to 14 years in prison for his drug-dealing operation and money laundering activities with Schwartz.

Facing the Consequences

Rueben Schwartz has now agreed to serve more than four years in prison as part of his guilty plea in federal court in Cleveland. The plea deal includes Schwartz paying $1.1 million in restitution to the unnamed insurance company and forfeiting three properties owned by either Schwartz or his businesses, R&E Properties and Schwartz Construction.The case highlights the serious consequences that can arise from engaging in criminal activities, even for those who may have initially believed they could outsmart the system. Schwartz's actions not only put his own freedom at risk but also had far-reaching implications, including the involvement of a major drug dealer and the loss of significant financial resources.As the sentencing approaches, the case serves as a cautionary tale, reminding individuals of the importance of upholding ethical and legal standards, even in the face of potential financial gain. The consequences of such actions can be severe, as Schwartz has now learned the hard way.