The president of ADCOR Industries — a Baltimore-based manufacturer of military weapons and communications equipment — has been indicted on charges he helped set one of his commercial properties on fire to collect millions in fraudulent insurance claims.
In a news release, the U.S. Attorney’s Office in Baltimore wrote that Demetrios “Jimmy” Stavrakis, 53, was indicted by a federal grand jury on March 28 on conspiracy and arson offenses. The indictment was unsealed Wednesday.
Stavrakis was arrested Wednesday and made his initial appearance in the U.S. District Court in Baltimore, the office wrote.
Federal court records had yet to update with information about the new charges.
Stavrakis’ attorney, Steven Levin, wrote in an email that Stavrakis “is a pillar of our community, working with law enforcement and our military to make them — and us — safer.”
The office wrote that the building was set on fire on July 29, 2015, and Stavrakis, through a public adjuster firm, filed more than $21 million in fraudulent claims from July 29, 2015, through Aug. 5, 2016.
Stavrakis collected about $15 million worth of insurance payments, the office wrote, and spent about $8.7 million for new machinery and business-related expenses.
The office wrote that Stavrakis also purchased a number of personal items, including a $98,499 Mercedes-Benz GL 550 and a $25,500 Harley Davison Street Glide motorcycle. Prosecutors also allege he transferred $600,000 worth of insurance proceeds into his wife’s personal bank account and paid her $6,000 monthly.
The office wrote that he faces charges of conspiracy to commit arson, malicious destruction of property, use of fire to commit a federal felony and wire fraud. He faces up to 20 years in prison on both the wire fraud and arson conspiracy charges.