CONNEAUT — The U.S. Marshals Service has seized property on Park Avenue in Conneaut after the property owner, Marc Mahoney, was convicted of various federal charges.
Mahoney pleaded guilty to three counts of conspiracy to distribute and possess with intent to distribute controlled substances, one count of conspiracy to launder monetary instruments, one count of possession with intent to distribute cocaine, and three counts of use of a communication facility in furtherance of a drug trafficking crime.
He was sentenced to a total of 14 years in prison.
As part of the sentence, Mahoney forfeited more than $2.5 million, along with his property at 180 and 182 Park Ave. in Conneaut.
Mahoney purchased the property from R and E Growth Properties on Dec. 30, 2021, for $80,000, according to Ashtabula County records.
In a separate case, Rueben Schwartz was accused of accepting what he knew was drug money from Mahoney in exchange for pair of properties in Conneaut, 180-182 Park Ave., and 247 Main St.
According to the second final order of forfeiture issued by the court, the Main Street property was not forfeited after prosecutors told the court a condition report obtained by the U.S. Marshals found the property does not meet Department of Justice thresholds for forfeiture.
According to the forfeiture order, the U.S. Marshals Service will pay for costs incurred preparing the property for sale, along with outstanding property taxes and sales costs. The balance of the sale proceeds will be forfeited to the United States. It also states the property was offered to R and E Growth Properties and Rueben Schwartz, because Schwartz and R and E hold a mortgage on the property, but Schwartz signed an agreement stating he and the company will not contest the forfeiture.
The U.S. Marshals Service in Cleveland declined to comment on the usual process for forfeited properties.
Schwartz’s case is still pending in the Northern District of Ohio federal court. A trial is currently scheduled for May 28.
In addition to the money laundering charges related to the Conneaut properties, Schwartz is facing a variety of charges stemming from the fire that destroyed the former Golden Anchor Restaurant and Lounge. He was charged in a superseding indictment 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 the one count of money laundering conspiracy related to the two properties he sold to Mahoney.
Schwartz is accused of preparing to set fire to the building 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 is alleged to have then submitted insurance claims totaling $1.14 million for the construction of a new beverage drive-thru business across the street.
Prosecutors are seeking the forfeiture of $15,000 in cash from Schwartz, along with property on Harbor Street and Underridge Road.
