A couple from Willoughby Hills, Ohio, has been sentenced in federal court for orchestrating a scheme to collect over $2 million in fraudulent insurance payouts by arranging the arson of insured homes.
Lonnie White, 48, received a prison sentence of 53 months and was ordered to pay restitution totaling $2,375,861. In addition to his prison term, he will serve three years of supervised release. White pleaded guilty last August to charges including conspiracy to commit mail and wire fraud, conspiracy to commit money laundering offenses, and conspiracy to use fire in commission of a felony. His sentence was imposed by Chief U.S. District Judge Sara Lioi on January 23.
Lisa Ogletree, also 48 and White’s spouse, was sentenced separately on January 28 after pleading guilty to conspiracy to commit mail and wire fraud. She received five years of probation with 810 days of location-monitored home confinement.
United States Attorney David M. Toepfer for the Northern District of Ohio commented on the case: “It’s traumatic for people to see a house in their neighborhood go up in flames, and these defendants shamelessly utilized devastating fires just to line their pockets with money,” Toepfer said. “Additionally, insurance companies paid out millions in claims—in good faith—only to learn that they were deceived by these fraudsters. We commend the outstanding efforts of the ATF agents on the case and their regional partners who spent countless hours connecting the dots which eventually led to justice being served.”
Court documents show that from 2013 through 2019, White and Ogletree either personally or through others acquired houses primarily on Cleveland’s east side. They then transferred ownership to individuals listed as nominal owners with fictitious renters before obtaining insurance policies valued at hundreds of thousands of dollars per property. The couple arranged for these homes to be set on fire so it would appear accidental and subsequently submitted fraudulent insurance claims for the damages.
Once insurance payments were made following each fire incident—at least six properties were involved—the funds were distributed by nominal owners back to White and Ogletree. The couple then moved this money into other bank accounts as part of their ongoing scheme.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Cleveland Field Office led the investigation into the case with assistance from multiple agencies including the Cleveland Fire Investigation Unit; Cuyahoga County Fusion Center; Ohio State Fire Marshal; Internal Revenue Service-Criminal Investigations; U.S. Department of Housing and Urban Development; and its Office of Inspector General.
Assistant United States Attorneys Adam J. Joines and Brian M. McDonough prosecuted the case for the Northern District of Ohio.
ATF is responsible for investigating incidents involving arson at the federal level. Individuals with information regarding arson are encouraged to contact ATF via phone at 1-888-ATF-TIPS (888-283-8477), email at ATFTips@atf.gov or through its website at www.atf.gov/contact/atf-tips.
