(WVVA) -
Federal prosecutors shut down two local businesses, seize the property, and charged the owners with insurance fraud.
According to court documents obtained by WVVA, Windel Lester, 66, his ex-wife Georgetta Lester, 41, sons James Lester, 47, and Gregory Lester, 40, were involved in a scheme to buy two homes and burn them down to collect insurance money totaling more than $556,000.
The Lester family owned Lester Home Center, Inc. and Lester Mobile Home Sales, Inc. out of Ikes Fork, Wyoming County.
In the indictment, U.S. Attorney Carol Casto stated the family purchased a home on Smokeless Road in Matoaka, WV in August 2012 for $38,000 and immediately took out an insurance policy covering “approximately $196,000 for the dwelling and $147,000 for contents, personal property, and replacement costs.” In December of that year, the home burned to the ground. Casto stated that James Lester and another man used unscented candle oil and set fire to the bedroom and kitchen.
According to Casto, in April 2013, a piece of property was purchased in Cabell County for $72,500 and a large amount of insurance coverage was obtained. The property was burned down in May. Casto stated that carboard boxes soaked with unscented candle oil was used to start the fire.
The family faces a slew of charges including insurance fraud, wire fraud, mail fraud, arson conspiracy, and money laundering.
Windel Lester, James Lester, and Gregory Lester are being held without bond in Southern Regional Jail.
If convicted, the Lesters face up to 20 years in federal prison for conspiracy to commit money laundering, and up to 10 years for money laundering. The fraud charges are punishable by up to 20 years in federal prison. Conspiracy to commit arson carries a penalty of 10 years in federal prison. The use of fire to commit a felony carries a sentence of up to 10 years, or, in Windel Lester and James Lester’s cases, a mandatory minimum sentence of 20 years in federal prison for a second offense. --U.S. Attorney Carol A. Casto
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Criminal activity is allegedly a family affair for four Mercer County residents indicted on federal charges this week.
A grand jury indicted a man, his two sons and his ex-wife on Nov. 14 after federal prosecutors alleged they burned down two homes in Mercer and Cabell counties and pocketed more than $550,000 in insurance claims.
Windel Lester, his ex-wife, Georgetta Lester, and his sons Gregory A. Lester and James Edward Lester, were named in a 28-count indictment that included charges of wire fraud, mail fraud, conspiracy and use of arson to commit mail and wire fraud.
All four of the Lesters were booked at the Western Regional Jail Wednesday, and Georgetta Lester had posted bond and was released from the jail Thursday afternoon.
No bond was set for James Lester, who goes by ‘Punkin’, or Windel Lester, who is the owner of Lester’s Home Center and Lester Mobile Home Sales, Inc., in Ikes Fork in Wyoming County, according to the indictment.
Windel Lester also is on the board of directors of a bank in McDowell County, which isn’t named in the indictment.
Two other men, Dudley Bledsoe and Ricky Gleason, were named in the indictment as helping in the scheme, but they were not facing federal charges as of the time the indictment was filed.
According to the indictment filed by U.S. Attorney Eumi L. Choi, the Lesters received $556,135.68 in the scheme.
The Lesters and the men purchased vacant properties, established insurance policies for them, burned down the properties using candle oil from Lester’s Home Center, and submitted false insurance claims before sharing in the profits, the indictment states.
The insurance claims were supported by receipts forged from Lester’s Home Center, according to the indictment.
After receiving the insurance money, they laundered the money through at least two banks in southern West Virginia, one of which was the bank that included Windel Lester on its board, according to the indictment.
Choi said in the indictment that the fires were started with unscented candle oil from Lester’s Home Center because the defendants believed it would be undetectable.
The Lesters and Bledsoe fraudulently received $290,000 for burning down a property at 101 Smokeless Road, Matoaka, in Mercer County in December 2012, the indictment states.
In June 2013, a fire was set to a property at 3542 Norwood Road, Huntington, and the Lesters and Ricky Gleason claimed $260,000 from fraudulent insurance claims, according to the indictment.
Each person was charged in the indictment as follows:
Windell Lester, 66: Four counts of wire fraud; 14 counts of mail fraud; four counts of unlawful monetary transactions; two counts of arson conspiracy; and one count each of use of fire to commit mail fraud; use of fire to commit mail fraud; and conspiracy to launder monetary transactions.
James Edward Lester, 47: Four counts of wire fraud; 14 counts of mail fraud; two counts of arson conspiracy; and one count each of use of fire to commit mail and wire fraud; use of fire to commit mail fraud; conspiracy to launder monetary transactions; and unlawful monetary transactions.
Gregory A. Lester, 40: Five counts of mail fraud; two counts of unlawful monetary transactions; and one count each of arson conspiracy and use of fire to commit mail fraud.
Georgetta Lester, 41: Four counts of wire fraud; 14 counts of mail fraud; and one count each of conspiracy to launder monetary transactions and unlawful monetary transactions.