Texas Mortgage Fraud Ring Unravels As Home Goes Up In Blazes; Arson Charged

KHOU-TV Channel 11 in Houston, Texas reports that seven people face various charges stemming from a mortgage fraud scam that ended with a home being intentionally set ablaze in Spring, Texas. According to the KHOU-TV reports:

• "A charred, gutted home on a small street of foreclosed homes in Spring is more than just an empty dwelling – it’s a sign of a disturbing new pattern in mortgage fraud. Harris County arson investigators said finding the cause of the fire at the house was easy. Explosions rocked the 7,000 square foot home Sunday afternoon when the owner was in the Bahamas. The Fire Marshal said there were 25 five-gallon containers of gasoline stashed all over the home that were ignited simultaneously."

• "A $1.2 million insurance claim was filed after the fire by the owner, Michael Macomber. Investigators said Macomber told them he paid Adnan Aquil $10,000 to destroy it while he was out of town. Macomber had written Aquil a check for $5,000 within three days of the fire. A second payoff between the two happened at a Houston bank, investigators said."

Based on the reports, it appears that Macomber was a straw buyer of the home that he had torched. According to one TV report, all the houses on the block have been foreclosed. Reportedly, Macomber bought the home for double what the previous owner (and alleged participant in the fraud ring), Arthur Monroe paid -- and then received a check from Monroe for $171,000 within 24 hours of closing. Several checks were distributed to other parties accused of fraud.

Macomber reportedly confessed to everything to law enforcement; according to the story, "he was the one left holding the bag when a $500,000 mortgage fraud ring unraveled around him." The torched house appears to be only one of a number of houses involved in the fraud committed by this ring.

In addition to Macomber, the following six others were charged in the scam: Arthur Monroe, Adnan Aquil, Mark Ariza, Freda Ariza, Pamela Anderson, and Stephen Branz. Of the seven people charged in connection with the arson, only Macomber had turned himself in Monday. The others have yet to turn themselves in.

For more:

Watch Lee McGuire's 11 News report.

Watch Alex Sanz's 11 News report.

To read the KHOU-TV Channel 11 online reports, see Mortgage fraud burns homeowners, and Seven indicted in arson fraud scheme.