Jamal Shehadeh Gets 30 Years for Arson-for-Profit Scheme

Sacramento, CA — Jamal Shehadeh, 59, of Sacramento, is going away for a long time after pleading guilty to two counts of arson to commit a felony, part of a brazen, years-long arson-for-profit scheme that endangered lives and raked in over $1.5 million in fraudulent insurance payouts. On February 10, 2018, U.S. District Judge Morrison C. England Jr. sentenced Shehadeh to 30 years in federal prison, slamming the door on a criminal run that stretched back to at least 2009.

Shehadeh admitted to setting or orchestrating fires at multiple commercial properties across Sacramento and Carmichael, including the October 15, 2012, blaze at Cobblestone Café, 910 University Avenue, and the June 16, 2013, fire at Golden Star Auto Supply, LLC, 2764 Fulton Avenue. He also confessed to igniting the December 27, 2009, fire at 1007 E Street and 427 10th St., as well as the April 23, 2012, fire at Galaxy Sacramento, 6964 65th St. Each was a calculated move to cash in on insurance policies through lies and deception.

The scheme, which ran from December 2009 to September 2013, involved a network of co-defendants, including Saber Shehadeh and Brian Stone, who helped file false claims for property damage, lost income, and cleanup costs. They used shell companies like Wolf & Associates Construction Inc. to launder money and hide profits, while feeding insurance companies fabricated stories about tenant improvements and demolition expenses. In total, seven fires hit six locations, including George’s Auto Care, Tru Value Market, and Escape Therapy.

“Jamal Shehadeh avoided prosecution for decades as he set fire after fire with complete disregard for the lives of anyone nearby including firefighters,” said U.S. Attorney McGregor W. Scott. “Shehadeh’s time committing the violent crime of arson and insurance fraud for the purpose of enriching himself has come to an end.” Federal and local agencies, including the FBI, IRS Criminal Investigation, Sacramento Fire Department, and Sacramento Metropolitan Fire District, spent years untangling the web of deceit.

“Jamal Shehadeh intentionally set fires, which threatened the lives and safety of our community members,” said FBI Sacramento Special Agent in Charge Sean Ragan. “The length of Shehadeh’s sentence highlights the seriousness of his admitted crimes and ensures he will not pose a threat to the community for decades.” The FBI called the case a textbook example of coordinated arson-for-profit, where human safety was sacrificed for cold, hard cash.

Michael T. Batdorf, Special Agent in Charge of IRS Criminal Investigation, emphasized that financial crimes tied to arson are not victimless: “The scheme netted Shehadeh and his co-defendants over $1.5 million in insurance proceeds while endangering members of the community. Those who line their pockets with profits from these schemes should know that IRS Criminal Investigation will continue to use our financial investigative expertise and work with our great law enforcement partners to bring them to justice.”

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