Fraud of the Week
September 23, 2019
Arson — Michigan
Amount: $1 Million
An Orchard Lake business owner was charged with arson after a fire destroyed his business in Mt. Morris, Michigan. The business owner has been charged and convicted of arson of insured real property and third-degree arson after his business, the Snack Depot, caught fire in November, 2015.
The fire caused severe smoke and water damage along with a large loss of inventory. The fraudster purchased the Snack Depot at an auction for $84,000 a year before the fire destroyed the business, and insured it for $1 million, ten times the value of the property and assets. The fraudster attempted to recover the full amount of the policy of his severely over-insured business.
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