Arkansas Developer Jailed in Arson-for-Insurance Case

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Little Rock, Ark., developer Aaron Jones, who was convicted of setting fire to his $1.6 million home in an insurance scheme, was taken into custody so he can start serving time pending a prison sentence.

Arkansas Business reported that a federal judge ordered Jones into custody after a hearing on Jones’ request to remain free pending sentencing. Prosecutors asked that he be locked up on grounds that arson is a crime of violence.

Jones was heavily in debt when he allegedly burned the home in hope of collecting a $2.8 million insurance payment. Jones claimed intruders bound him and burned the home.

Jones was convicted on Sept. 28, 2010, on three counts of mail fraud and one count of using fire to commit mail fraud.

Prosecutors accused Jones of setting the house ablaze on May 30, 2008, then filing a $2.8 million insurance claim. A grand jury indictment said the fire occurred not long after Jones was unable to make a $331,000 balloon payment on the home.

Jones maintained his innocence throughout, telling investigators armed intruders bound him with duct tape, doused the home in diesel fuel and set it on fire.

Assistant U.S. Attorney Julie Peters called Jones’ story “absolutely false.” Peters cast doubt on whether armed intruders would return the crowbar to the place in the garage they found it after using it to break into the house.

“These are not only the neatest intruders in the world, they are the most efficient intruders in the world, because Aaron Jones says they did all that in 15 minutes,” Peters said.

Peters also cited the testimony of a forensic accountant who said Jones had financial problems.

“Aaron Jones was a man who needed cash to keep up with his lifestyle,” Peters said. “He did not have the cash. He saw the writing on the wall. And so he burned his house down.”

Defense attorney Tim Dudley said the forensic accountant examined only bank records and no other financial documents. Other witnesses testified that Jones had money and therefore had no motive to set the fire.

Dudley said the prosecution botched the investigation by narrowly focusing on Jones. He said investigators ignored a possible lead about a car speeding off just before the fire was reported.

Other items, including the duct tape Jones said he was bound with, were discarded without DNA testing, Dudley said.