A federal grand jury has indicted a former Lexington man on charges that he was part of a conspiracy to burn a rental house in order to collect insurance on it.
Bassam Manna Alfroukh, 55, also known as Sam Alfroukh, was indicted last week on charges of conspiracy to commit arson, and conspiracy to commit wire and mail fraud, and aiding and abetting mail fraud.
The six-count indictment says Alfroukh defrauded Safeco Insurance by collecting money for losses connected to a 2012 fire at a rental house in the 3700 block of Winchester Road.
Three days before the fire, the people who rented the house from Alfroukh left by airplane from Lexington to Florida, the indictment says.
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The indictment says Alfroukh and others sought to collect money for losses on the full value of the personal property that had been replaced with items of lesser value and sought to collect money for other incidental losses and costs.
The Lexington Fire Department initially ruled the cause of the Nov. 5, 2012, fire as “undetermined,” but later changed the determination to “incendiary,” the indictment says.
After the fire, Alfroukh notified Safeco Insurance Co. of a loss as a result of damages from the fire.
In 2013, Safeco paid a total of $78,979 on false claims for losses due to arson, the indictment says.
Alfroukh is scheduled to be arraigned Sept. 6 before U.S. District Court Magistrate Judge Robert E. Wier.
The Federal Bureau of Prisons lists Alfroukh as an inmate at the U.S. Penitentiary-Big Sandy in Inez.
He was among 11 people charged in 2013 with selling or conspiring to sell drugs in Fayette, Clark and Madison counties.
He pleaded guilty in 2014 to conspiracy to distribute Oxycodone, possession with intent to distribute Oxycodone and possession of a firearm in furtherance of drug trafficking. His scheduled release on those charges is January 2019.
The charges in the last week’s indictment carry penalties ranging from five to 20 years in prison, $250,000 in fines, and no more than three years of supervised release.