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Wednesday, 21 October 2009 |
Saline County attorney/developer Aaron Jones, whose home in an exclusive West Little Rock neighborhood burned in May 2008, has pleaded not guilty to fraud and arson charges in federal court.
Jones, 33, entered the pleas Tuesday before U.S. Magistrate Judge Beth Deere. His trial was tentatively set for Nov. 30 before U.S. District Judge Brian Miller.
A federal grand jury on Oct. 8 indicted Jones on three counts of mail fraud, one count of the use of fire in the commission of a federal felony and one count of arson in connection with the destruction of his Chenal Valley home.
The indictment says Jones claimed a loss of $2.8 million from the fire and an insurance company paid $1.2 million to the primary mortgage holder.
According to the indictment charging Jones, he devised a scheme to commit insurance fraud regarding the home he and his spouse purchased at 43 Chenal Circle.
Jones told police that he was bound and gagged by an intruder who then set fire to his house.
Little Rock police Lt. Terry Hastings said the police department received a call from Jones at 1:45 a.m. That was about 15 minutes after a neighbor, Crystal Reid, told a news outlet that Jones had crawled to her house and banged on the door.
“He said his hands were duct-taped in front of him,” Hastings said. “He said he woke up and saw this male standing over him with a gun.”
Jones reportedly said he believed his assailant to be “like 6 feet, 200 pounds.”
Immediately after the incident, rumors persisted that the account Jones gave authorities may not have been truthful.
Much speculation emanated from various news outlets and blogs that Jones had experienced financial burdens and possibly played a role in the incident.
At that time Hastings said authorities were investigating the incident as a home invasion involving arson. Hastings said he was aware of the rumors involving Jones, “but until we have proof otherwise, that’s how we’ll continue our investigation.”
Jones’ wife, Abby, and children were away on a trip and he was the only person in the house when the fire occurred, he said in varying accounts.
The Joneses reportedly purchased the 5,700-square-foot house in 2005 for $1.6 million and had been attempting to sell the gated structure for a year before the fire.
When the house at 43 Chenal Circle was purchased around May 5, 2005, the Joneses insured the house and its contents with The Standard Fire Insurance Company/The Travelers Companies Inc. against loss or damage by any peril not specifically excluded, such as by fire. This policy was renewed annually, including on or about May 5, 2008, for the time period May 5, 2008 through May 5, 2009.
In the policy’s “exclusions” section, it stated that no intentional losses would be covered, meaning any loss arising out of any act omitted by or at the direction of an insured party and with the intent to cause a loss.
Until recently Jones was a partner with Don Spears at Spears and Jones law office and title company, 113 S. Market St. in Downtown Benton.
According to the indictment, Jones’ home was listed for sale at a price of $1.6 million — down from an initial asking price of $2.2 million — when it burned. The indictment said Jones and his wife had missed making a balloon payment of $331,000 and had to renegotiate a mortgage.
The indictment also noted that Jones later claimed a loss of $2.8 million from the fire and an insurance company paid $1.2 million to the primary mortgage holder.
Tim Dudley, Jones’ legal counsel, has claimed his client is innocent.
“They can’t prove that he set (the fire) or that he caused it,” Dudley reportedly told a news outlet.
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