California man gets 5-year sentence in Cleveland house-flipping scheme

A county judge in Cleveland has sentenced a California man, Marc Tow, to five years in prison for the money laundering and theft of investors’ money that investigators say was associated with the sale of close to 200 run-down homes in the Cleveland area, according to the Cleveland Plain Dealer.

Tow will also give up 194 properties and pay more than $300,000 to six victims as part of a guilty plea he submitted in July on theft, money laundering and corrupt activity charges, the judge said.

A Cleveland Housing Court judge had already sentenced Tow in August to serve a year and a half in prison and fined him close to $100,000 for his actions. Tow admitted that he should have physically inspected the homes and reviewed their documents more closely before closing deals but said he wasn’t the prime actor in the scheme, the Plain Dealer reported.

Source: Cleveland Plain Dealer