Wednesday, February 11, 2015

WARREN, MICHIGAN BUSINESS OWNER PLEADS GUILTY IN ARSON-FOR-PROFIT SCHEME. HE ADMITTED IN COURT THAT HE BURNED DOWN BEST TEXTILE SERVICES ON HOOVER ROAD NEAR STEPHENS ROAD ON MAY 4, 2011 IN ORDER TO COLLECT ON AN INSURANCE POLICY





 

WARREN, MICHIGAN BUSINESS OWNER PLEADS GUILTY IN ARSON-FOR-PROFIT SCHEME.  HE ADMITTED IN COURT THAT HE BURNED DOWN BEST TEXTILE SERVICES ON HOOVER ROAD NEAR STEPHENS ROAD ON MAY 4, 2011 IN ORDER TO COLLECT ON AN INSURANCE POLICY




The owner of a commercial laundry company in Warren that was destroyed by a natural gas explosion four years ago has pleaded guilty to intentionally setting a fire that caused the explosion, according to the U.S. Attorney’s Office.




Alexandros Yfantidis entered a guilty plea to one count of mail fraud and admitted in court that he burned down Best Textile Services on Hoover Road near Stephens Road on May 4, 2011 in order to collect on an insurance policy,



His plea agreement with federal prosecutors calls for restitution to reimburse victims whose homes and personal property were damaged by the explosion.



“Oh my goodness, that’s good to hear” said Warren Fire Commissioner Wilburt “Skip” McAdams. “In my 33 years in fire service, I’ve never seen a building that burned so completely. It was unbelievable.”




Yfantidis, 74, of Clinton Township, was indicted in 2014 by a federal grand jury on six charges including arson and bank fraud for the explosion that damaged 49 homes and business structures, causing more than $1 million in property losses.




Court records did not specify how Yfantidis torched the building other than to say he caused the fire, but investigators determined someone deliberately opened a 2-inch gas line inside the building and left a candle burning in its path, which caused the explosion.




The blast was felt for miles around, damaging at least 21 nearby residences and 28 businesses, and slightly injuring three passers-by.




In addition to arson, the grand jury charged Yfantidis with mail fraud, using explosives to commit a felony, bank fraud, obstruction of justice and bankruptcy fraud. He faces up to 20 years in prison when he is sentenced June 5 before U.S. District Judge Stephen J. Murphy III.




Court records show he devised a scheme to collect insurance proceeds from Farmers Insurance after the fire and lied to law enforcement officials to cover up his involvement with the explosion.




Yfantidis and his wife, Helen, are from Greece and came to the United States where they started a business supplying Detroit-area businesses with napkins and tablecloths, They later created Best Textile, a laundry service that specialized in bed and table linens for restaurants, hospitals and nursing homes.



In recent years, the couple’s lives unraveled due to business and personal challenges.




According to court documents, the couple filed for Chapter 11 bankruptcy for personal and business debts. After the explosion, the court converted the case to a Chapter 7 bankruptcy, or liquidation because the business was inoperable. Helen Yfantiids had been diagnosed with dementia or the early stages of Alzheimer’s disease, court records show.




Once investigators determined the fire was arson, Warren Mayor James Fouts said he would seek payment for “emotional and financial damages” for the victims. 

On May 4, 2011, a massive blast obliterated Best Textile Services near Hoover and Stephens.The blast that destroyed an industrial laundry showered the area in debris, shook nearby homes and garages from their foundations, and smashed windows within a 1/4-mile radius.



The fire commissioner said he has compiled a packet of documents outlining the city’s expenses for the incident, including manhours involved for the joint investigation with the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and work performed by the Department of Public Works to clean the streets and site after the rubble was demolished. 




Warren plans to seek reimbursement for those expenses, but it’s not clear what financial resources YFantidis has left.




Defense attorney David Steingold on Tuesday declined to comment.



In a news release, U.S. Attorney Barbara L. McQuade thanked the Warren Fire Department for its role in the probe, noting the danger firefighters faced in extinguishing the blaze.




For information concerning restitution, potential victims may contact the U.S. Attorney’s Office Victims Witness Coordinator at 313-226-9633 or Tiesha Johnson of the ATF at 313-202-3400.





The moral of the story:  do not do it, you will get caught.  The modern fire investigators are much smarter than you think.