Man Pleads Guilty To Money Laundering

COLUMBUS, Ohio – In a release issued by the United States Southern District Court, Charles E. Townsend, 39, of Columbus pleaded guilty in United States District Court here to one count of money laundering for his involvement in a mortgage fraud scheme that exaggerated property values to out of state investors in order to secure funding for the purchase of properties in primarily low income neighborhoods in Columbus. 
According to statements of facts presented in court, Townsend helped two co-conspirators, Aryeh Schottenstein and Jeffery Lieberman, fraudulently secure funding from Stillwater Investments Group of New York for real estate transactions involving properties in Columbus. Townsend exaggerated the value of properties in order to induce Stillwater to fund real estate transactions in amounts well in excess of the true value of the properties involved.  Townsend also promised to use certain funds provided by Stillwater to renovate houses involved in those real estate transactions, which renovations were not undertaken.  In some of these transactions Townsend also retained funds as purported “consulting fees” when no commercially valuable consulting services were performed. 
Money laundering is punishable by up to ten years imprisonment, a fine of up to $250,000 and restitution. Judge Marbley will set a date for sentencing.

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