Fraud of the Week

September 28, 2015

Arson Fraud—Virginia

AMOUNT: $200,000

 

The owner of a sub shop was sentenced to fifteen years in prison and five years of supervised release and was ordered to pay $34,000 in restitution for burning his sub shop and filing an insurance claim. His accomplice was sentenced to five years in prison, two years of supervised release, and $34,000 in restitution. A second accomplice was sentenced to five years in prison, two years of supervised release, and $34,000 in restitution. The owner of the shop was under financial strain and had reported $60,000 in losses on his income tax return. He recruited his son and another individual to burn the shop down; gasoline was used as an accelerant, which caused an explosion and fire at the shop. The owner and the accomplice were badly burned. The owner then submitted a claim for damages of $200,000, constituting mail and wire fraud.