PORTLAND — Testifying in his own defense Tuesday, Summit 1031 Exchange co-founder Mark Neuman adamantly denied misleading clients by investing their money in real estate.

Neuman, along with Timothy Larkin, of Redmond; and Lane Lyons, of Bend; are on trial in U.S. District Court on charges of wire fraud and money laundering conspiracies. The government alleges the three principals at Bend-based Summit funneled more than $44 million in client funds into investment real estate deals for themselves and business associates between 1999 and 2008.

Brian Stevens, another Summit co-founder, pleaded guilty to identical charges last year and is serving a four-year prison term.

Summit 1031, which took its name from section 1031 of the federal tax code, helped clients who sold property defer capital gains taxes. To avoid the tax, the property owners had to deposit the money with an exchange accommodation company like Summit and reinvest it in similar property within 180 days.

The company told clients on its website and in marketing materials that their funds were deposited in insured bank accounts, but the Summit principals put millions of dollars in client exchange funds into real estate investments the principals set up.

Neuman, testifying over several hours, said he didn’t keep a close enough eye on the growing debt on the company’s properties, or on some of the information published in Summit brochures and on its website. But he denied criminal wrongdoing.

“I just thought, and was never told differently, that we could take those Summit funds and invest them appropriately,” Neuman said, responding to questions from his attorney.

Neuman, a certified public accountant, said the Summit principals never misled clients about their funds. While they invested in real estate, they used profits from those investments to return funds to clients. They backed up their debts with their personal wealth and stopped buying properties several months before new federal regulations forbade the practice, he said.

“Real estate offered very good investment opportunities,” he said. “And we controlled the assets. We didn’t feel we were taking risks if we controlled the assets.”

But business plummeted when the real estate market tanked in 2008, and more than 90 clients lost a total of $13.7 million when Summit filed for bankruptcy in December 2008, prosecutors allege.

Neuman was still being questioned by defense attorneys when U.S. District Judge Anna J. Brown adjourned court for the day. Prosecutors are expected to cross-examine him today.