Couple Accused In Family Arson Scheme Arraigned

SANTA CLARA COUNTY, CA — A man and a woman who allegedly headed a family arson ring were arraigned in Santa Clara County Superior Court on Wednesday for more than 30 counts of fraud and arson, according to the state's Department of Insurance. Tyler Chen, 46, and his wife Kim, 45, appeared in court following their arrest for their role in supposedly setting fires in a fraud scheme, scamming five insurance companies out of $4 million, according to state insurance officials.

In January 2014, the Department of Insurance received a consumer hotline tip that there was a connection in a string of home, business and warehouse fires that occurred between December 2011 and September 2013.

The tipster gave the exact address of where the next house fire would burn, according to the department, which then launched an investigation with San Jose fire officials and the district attorney's offices from Santa
Clara and San Joaquin counties.

That investigation showed that two fires occurred at a business owned by the Chens and that shortly afterward, their homes in San Jose and Stockton also burned, state insurance officials said.

The residential fires were all reported to have started when chicken being fried was left unattended.

The Chens allegedly orchestrated the situation to make it look like a careless cooking accident and planted many of the same smoke-damaged items that they had previously claimed from other alleged fires, according to the department.

Chen and his business associate, Ha Nguyen, 63, of Stockton, rented warehouses for an import and export business that they owned. The investigation revealed that they too claimed damage from fires in their
warehouse or neighboring units by planting damaged items.

The Department of Insurance said the damaged goods claimed in the fire had been purchased, but not yet received, which led to Nguyen's arrest.

The Chens recruited a family member, a co-worker and another local business owner to take part in the scheme, using the same smoke-damaged goods identified in other fires, according to state insurance officials.

The damages claimed totaled $5,653,665, and $4,009,008 was paid out by insurance companies.

Those recruited, Trang Huynh, 34, of Stockton, Suong "Sandy" Ngo, 49, of Santa Clara, and Duyen Pham, 49, of San Jose, were also arrested.

All involved in the alleged scheme are scheduled to return to court July 23, except Nguyen, who will be arraigned on Tuesday, according to the Department of Insurance.

By Bay City News Service

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