A Lutherville-Timonium man who conspired to burn down his Baltimore-based business in 2015 was sentenced this week to 15 years in federal prison, followed by three years of supervised release.
Convicted in October, 54-year-old Demetrios “Jimmy” Stavrakis was found by a jury to have defrauded his insurance company and was charged with arson conspiracy when he had his company, Adcor Industries of 234 S. Haven Street in Baltimore, set on fire. Stravakis made an insurance claim the same day for which he was paid over $15 million.
“The evidence proved that ‘Jimmy’ Stavrakis conspired to burn down his business in order to defraud his insurance company of millions of dollars in insurance proceeds,” said U.S. Attorney Robert K. Hur of the sentence. “Now he will serve 15 years in federal prison, where there is no parole—ever. Criminals who commit arson to obtain insurance proceeds jeopardize their community and first responders, and must be held accountable.”
The U.S. Attorney’s Office found that his business, which Stavrakis had owned since 1991, suffered an economic downturn starting in 2010 due to the loss of a client, causing Stavrakis to liquidate his assets.
Investigators found that the company’s liabilities exceeded its assets by almost $900,000 at the time of the fire, sentencing documents showed.
On July 28, 2015, alarms were disarmed and the security feature on the front door was disabled with adhesive tape. During early-morning hours the next day, a fire was reported to law enforcement by a passerby who saw smoke coming from the building.
The Baltimore Fire Department responded to extinguish the blaze. The fire destroyed an office in the building and damaged a portion of the ceiling directly above the office area. Stavrakis then contacted an adjustment firm later the same day to request assistance in filing claims with his insurance company.
According to sentencing documents, half of the insurance payout to Stavrakis was used to restore damages to the building, purchase new machinery, inventory, and for other business expenses.
But additional insurance proceeds were used for personal expenses, including $600,000 which Stavrakis deposited into an account in his wife’s name which he also set up to receive recurring $6,000 payments.
The States Attorneys office also proved that Stavrakis purchased over $35,000 in watches and jewelry and over $176,000 for vehicles, including a 2016 Mercedes-Benz, a Harley-Davidson Street Glide motorcycle, and a 2016 BMW titled and registered in his wife’s name.
In addition to his sentence, Stavrakis was also ordered to forfeit $15,081,435.