BLUEFIELD, W.Va. - A McDowell County man was sentenced to prison and two other men pleaded guilty today in connection with an arson fraud scheme.
Douglas Vineyard, 36, of Welch, was sentenced to three years and one month in prison, to be followed by three years of supervised release, for wire fraud. Scott Meadows, 52 of Welch, and Christopher Gross, 44 of Bluefield, Virginia, pleaded guilty to wire fraud.
According to court documents and statements made in court, on July 1, 2019, Vineyard bought a house on Princeton Street in Bluefield, West Virginia, for $5,000 at the direction of Gross. On July 31, 2019, Vineyard bought an insurance policy on the house with assistance from Gross, stating that the house’s purchase price had been $50,000. The insurance coverage included $285,500 for the dwelling, $142,750 for the contents and $14,275 for other structures.
In early August 2019, Vineyard, Gross and Meadows devised a scheme with others to burn down the house and collect the insurance proceeds. On August 6, 2019, Meadows set fire to the house with the help of two other individuals who were each offered $500 for their assistance. The house was a total loss. On Aug. 16, 2019, Vineyard faxed a Sworn Statement of Proof of Loss seeking $285,500 in insurance proceeds for the house. The insurance company spent over $13,000 investigating Vineyard’s false claim, ultimately denying it.
Gross and Meadows are scheduled to be sentenced on January 9, 2023. Each faces a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Postal Inspection Service and the West Virginia Offices of the Insurance Commissioner.
Senior United States District Judge David A. Faber presided over the hearings. Assistant United States Attorney R. Gregory McVey is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-131.
Source: U.S. Department of Justice, Office of the United States Attorneys
