Fraud of the Week

January 15, 2018

Arson—Pennsylvania

Amount: $100,000

 

A Pennsylvania man pled guilty to lighting his auto repair shop on fire in 2016 in hopes of receiving an insurance payout. His charges were officially arson, reckless burning or exploding, and insurance fraud. In May of 2016 the Reynoldsville Fire Department responded to the auto repair shop after a passerby reported the fire to 911. When the fire department arrived, smoke was escaping the building on all four sides. Eventually the fire became so large it required a second alarm. The Reynoldsville department was supplemented with units from five other stations and tankers from four other stations to provide enough water. Sixty-five firefighters in all responded to the fire. Luckily, at the time of the fire, the building was unoccupied. The damage to the auto repair shop was estimated at over $100,000. At the time of the fire, there were two insurance policies covering the shop. One of the policies had been cancelled earlier in the day but it was effective until midnight that evening. The fire took place around 9:00 pm. The other policy had been opened weeks before the fire at a higher rate of insurance, using untrue information about the business' operations (including annual profits). The fire investigator determined that the fire had started in a small crawlspace where some shop rags had been ignited. Upon admitting his arson, the fraudster was sentenced to 1.5 to 3 years in a state prison, and 5 years of probation.

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