Demetrios Stavrakis, Arson Conspiracy, Maryland 2015
Baltimore Business Owner Convicted of Arson Conspiracy
In a shocking turn of events, Demetrios Stavrakis, a/k/a Jimmy, a 53-year-old resident of Lutherville-Timonium, Maryland, has been convicted of conspiring to burn down his business in order to obtain insurance proceeds.
A federal jury delivered the guilty verdict on October 28, 2019, after a 7-week trial that began in July 2015. The evidence presented at the trial revealed that Stavrakis made a plan to set fire to commercial property he owned at 234 S. Haven Street in Baltimore, which housed Adcor Industries, Inc., a manufacturing shop owned by Stavrakis since 1991, as well as Adcor Beverage, LLC and other LLC’s owned and created by Stavrakis.
The trial evidence showed that by 2010, Adcor’s business experienced a downturn due to the loss of a contract with Colt Industries. From 2011 to 2015, Stavrakis’s businesses defaulted on various loans, struggled to pay suppliers, and sold off profitable divisions of the business to satisfy defaulted loans. In 2014, Adcor incurred an operating loss of $2,053,427, and its liabilities exceeded its assets by almost $900,000. Financial records showed that during 2014, Stavrakis liquidated personal assets and injected the proceeds into Adcor to utilize as working capital.
The evidence also proved that on July 28, 2015, Stavrakis used adhesive tape to defeat one of the security features on the front door of the building so that the person or persons setting the fire could enter the building. At approximately 1:30 a.m. on July 29, 2015, the fire was reported to law enforcement by a passer-by who saw smoke emanating from the building. The Baltimore Fire Department responded to extinguish the blaze, which destroyed an office on the shop floor of the building and damaged a portion of the ceiling directly above the office area.
According to the trial evidence, from July 29, 2015, through August 5, 2016, the adjusters, acting on behalf of Stavrakis and his companies, submitted insurance claims totaling more than $21 million. The insurance company paid a total of approximately $15,081,435. Of that amount, approximately $7.5 million was used to purchase new machinery, purchase parts inventory, restore the building, and for other business expenses. In addition, insurance proceeds were transferred or used for other expenses, including $600,000 which was transferred.
U.S. Attorney Robert K. Hur stated, “The evidence proved that ‘Jimmy’ Stavrakis conspired to burn down his business in order to defraud his insurance company of millions of dollars in insurance proceeds. Criminals who commit fraud destroying property by fire, jeopardizing their community and first responders, then spend the stolen money on luxury cars, watches, and jewelry, must be held accountable.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian Geraci; and Commissioner Michael Harrison of the Baltimore Police Department.
Mandatory Facts:
- Defendant: Demetrios Stavrakis, a/k/a Jimmy
- Criminal Charges: Conspiring to burn down his business in order to obtain insurance proceeds
- City and State: Baltimore, Maryland
- Exact Date: July 28, 2015
- Sentence or Outcome: Convicted after a 7-week trial
- Dollar Amounts: $21 million (insurance claims), $15,081,435 (insurance company paid), $7.5 million (used for business expenses)
Key Facts
- State: Maryland
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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