Saturday, April 12, 2008

Key Figure In Indianapolis Arson Scam Gets Four Years; Ring Accused Of Buying Low Cost Homes, Torching Them, Pocketing Insurance Cash

In Indianapolis, Indiana, The Muncie Star Press reports:
  • Kenneth Allen blamed "greed and arrogance" for his serial arson-for-profit spree that resulted Wednesday in a four-year prison term and an order to pay more than $1 million in restitution to eight insurance companies.

***

  • Allen pleaded guilty to conspiracy to using arson to commit mail fraud, a federal charge that carried a maximum 20 years in prison and $250,000 fine. He was described by authorities as the mastermind of the scheme and became the first to be sentenced following federal indictments last fall. Other alleged conspirators face state charges in Delaware County courts. [Federal Judge Sarah Evans] Barker weighed Allen's past criminal history -- including a 2000 conviction for dealing in cocaine -- and federal prosecutors' recommendation of a five-year prison term in sentencing Allen to four years in prison along with the restitution.

  • "This is quite a balancing act for the court," said Barker, reading court documents that said the scheme involved more than 37 arsons and in excess of $1 million in claims.

***

  • Authorities said Allen and others would buy low-priced houses either as their own or for others, set them ablaze and collect insurance settlements.

For more, see Arson-for-profit kingpin gets four years. foreclosure arson xerox