Experts: Increase in Foreclosures Spurs Arsons

Bail was set on Wednesday for a Maryland man accused of burning down his home to avoid mortgage foreclosure, and experts say that arson as a way out of financial woes is becoming a national trend.

An Owings Mills man accused of hiring someone to torch his home in January went before a federal magistrate Wednesday to make a plea for bail.

Federal investigators alleged that Keith McMahon, 41, paid someone $10,000 to burn his house down to collect insurance money because the bank was about to foreclose on his mortgage.

More than 100 firefighters responded to McMahon's home on Caves Road on Jan. 29.

Federal agents said that McMahon allegedly arranged the arson because he was as much as $30,000 in debt and behind on his mortgage payments. The federal complaint says that he planned to collect $800,000 from insurance proceeds.

With the number of foreclosures skyrocketing and the real estate market stagnant, arson as a way out of financial trouble is a growing concern across the country, experts said.

"We are looking at that. We have not seen any kind of a trend at this point in time other than the normal caseload that we would normally be looking at," said Maryland Fire Marshal William Barnard.

The number of intentionally set fires to buildings increased in Maryland from 2005 to 2006 by nine, while the number of vehicles being torched declined by 90, according to the state fire marshal's office. The figures for 2007 are still being tallied.

Two weeks ago, a former Maryland Transit Administration police officer and a former MTA bus driver were sentenced in federal court after pleading guilty to hiring someone to torch their vehicles in order to dodge loan payments.

"The goal here was to help these people get out of making payments on their cars. They created a significant hazard by burning these vehicles and sticking the insurance companies with a loss," said U.S. attorney Rod Rosenstein.

Prosecutors said that as a result of the arson at McMahon's home, a firefighter battling the blaze was seriously injured after falling 12 feet and landing in a basement.

"Once you unleash that fire, you have no clue where this is going to end up. You've got firefighters responding. Depending on the type of structure, you may have other persons involved. There's just so many things that can happen once a fire gets going," Barnard said.

Federal prosecutors said that McMahon also threatened to kill the person who cooperated with investigators.

A federal judge considering bail on Wednesday, acknowledged that prosecutors had a strong case of arson, but he was not convinced that McMahon was dangerous or a flight risk. He set a conditional bail at $100,000.

State and local officials assisted in the federal investigation of the Owings Mills arson.

"Our closure rate is about double the national average, and we are very proud of that," Barnard said.

McMahon remains in jail. Prosecutors have another 24 hours to present evidence that he is dangerous and/or a flight risk.

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