Fraud of the Week
August 20, 2018
Arson — West Virginia
Amount: $580,000
Update: A federal jury convicted four family members on charges associated with arson and insurance fraud. Between April 2012 and June 2016 they fulfilled 3 interrelated arson schemes with the purpose of fraudulently obtaining insurance proceeds for houses they intentionally burned down. The houses were insured for amounts that greatly exceeded their value and the value of the contents within. No bodily injury was suffered, but the insurance payouts amounted to over $500,000. The lead fraudster was found guilty of 23 felony charges and faces 340 years in prison, while his right-hand man received 23 felony charges and faces 475 years in prison. Their sentencing hearings will be held in December.
Original Article (March 19, 2018): This week, 2 men pleaded guilty in federal court for a scheme to commit insurance fraud by arson. In spring of 2012, the two fraudsters purchased a house in Mercer County for $38,000. They insured the property for $300,000 and set the house on fire using unscented candle oil and cardboard. The fraudsters, with the help of some others, filed false claims for the house. The proceeds were collected and divided to all of the people involved in the scheme. Because this scheme was so successful, the fraudsters purchased a house for $100,000 and insured it for over $400,000. Several other individuals provided funds for the purchase. The next month, the fraudsters burned the house down, using unscented candle oil and cardboard. While the mastermind fraudster was out of town, for an alibi, the other fraudsters burned the house. When he returned, the fraudster filed a claim for the loss of the house as well as for lists of false contents. They collected over $280,000 in insurance proceeds, which were divided amongst all of the contributing fraudsters. The main duo are set to be sentenced on May 30, 2018.
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