Saber A. Shehadeh, 76, of Sacramento, is headed to federal prison for nearly five years after being convicted in a brazen arson fraud scheme that burned down a historic building and scammed State Farm out of more than $1.4 million. On June 14, 2018, a jury found Shehadeh guilty of three counts of mail fraud, culminating in a sentence of four years and nine months handed down by U.S. District Judge Morrison C. England Jr.
The fires tore through Shehadeh’s properties at the corner of 10th and E Streets in Sacramento’s Alkali Flat neighborhood on December 27, 2009, and August 15, 2010. The second blaze destroyed a historic structure housing his business, Tru Value Market. But investigators uncovered a pattern of financial decay long before the flames: USDA food stamp program suspension, bounced mortgage checks, business account overdrafts, and a criminal conviction for food stamp fraud and receiving stolen property that jeopardized his alcohol license.
After the second fire, Shehadeh became a silent partner in a shell construction company used to funnel fraudulent cleanup invoices to State Farm. He submitted fake documents and made false statements during the insurer’s investigation—lying about the state of his market before the fires and the extent of debris removal after. The scam worked: State Farm paid out over $1.4 million in insurance proceeds.
With the cash, Shehadeh cleared his mortgage and pocketed hundreds of thousands more—money he funneled into new ventures and shared with family, including co-defendant Jamal Shehadeh. The payout wasn’t relief. It was profit from crime.
The investigation was led by the Federal Bureau of Investigation and IRS Criminal Investigation, with critical support from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.
Jamal Shehadeh pleaded guilty on February 10, 2018, to two counts of arson to commit a felony and is now serving a 30-year sentence for setting or arranging the first fire. Brian Stone, another co-defendant, was convicted on April 17, 2018, of 13 counts of mail and wire fraud and sentenced to six years in prison on September 27, 2018. The fires were destruction. The fraud was premeditated theft.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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