Nevertheless, the majority report of an 1841 investigating committee exonerated Swan of all charges, and he remained in office until William B. Snyder was appointed building superintendent by the new territorial governor, John Chambers. Swan buys the National Hotel in Iowa City and changes the name to Swan's Hotel. Likewise, Swan's Hotel, formerly known as the National Hotel, had been repaired and improved. With a large addition erected during the summer, it was 'sufficiently commodious to accommodate a large number of visitors. Swan's wife, Dolly, dies in Iowa City and is buried in Oakland Cemetery next to Cordelia.
Swan leaves Iowa City for California, presumably to participate in the gold rush.
He never returned to Iowa City. Stories of his death vary. One account has him dying aboard ship in New York harbor after making the voyage from California via Cape Horn to New York City. Another account says simply that he was lost at sea.