Fraudster jailed after setting homes on fire for £400K payout

A 52-year-old man has been sentenced to 13 months in jail after deliberately setting three homes on fire in a desperate attempt to receive £400,000 in compensation, following IFB’s investigation with Police Scotland, the Scottish Fire and Rescue Service (SFRS) and insurer Zurich.

Michael Maggs, of Culbokie, Black Isle, Ross and Cromarty in Scotland, appeared at Inverness Sheriff Court last month where he admitted a single charge of insurance fraud, and received his sentence on 17 April 2023.  

The case first came to light in 2017 when SFRS were called out to a fire at three properties at Earlseat Steading, Moyness near Nairn, which left two homes completely destroyed.

Police Scotland and SFRS found evidence that the fire was deliberate. As Maggs had made several property damage claims to Zurich, IFB was approached by the police to confirm fraud as the motive.

Together, IFB and Zurich built a package of evidence which confirmed Maggs’ connection to the fraud, which Police Scotland could submit to the Crown Office and Procurator Fiscal Service (COPFS). He was arrested in October 2018 and soon charged with insurance fraud in connection to the fire.

In court it was heard that Maggs, who is a property developer, was under pressure to pay a second loan of £20,000 secured against the steading and in his wife’s name.

Lewis Kennedy, who represented Maggs, said in court:

“He was in a state of financial stress at the time. The development had run over time and into financial trouble. He was unable to make payments for the second loan and that lender was vigorously pursuing payments and forcing a sale. He saw setting the fire as his way out to retain solvency and save his marriage.”

The court also highlighted how Maggs had made false declarations to Zurich by telling the company there was heavy fencing and CCTV on the property, and that he would be living there – all of which was untrue but helped him to secure £400,000 rebuild cover.

After the sentencing, Detective Inspector Reuben Lindsay who led the case at Police Scotland, said:

“Maggs wove a tangled tale in order to obtain insurance for the buildings he was developing. He was economical with the truth, and has now pled guilty to causing the fire and deliberately trying to obtain a large insurance payment fraudulently.

“People like Maggs will not be allowed to get away with such fraud and I welcome his sentencing. No matter how long it takes, we will always work to bring those responsible for fraud to justice.”

Jon Radford, Head of Intelligence, Investigations and Data Services at IFB, added:

"Insurance fraud is not a victimless crime. It costs everyone and can even put innocent people at risk. We're pleased that our collaboration with Police Scotland, the SFRS and Zurich has helped to bring Maggs to justice."

Insurance fraud can be reported to IFB’s confidential CheatLine (powered by CrimeStoppers) on 0800 422 0421 or online.