Nail Salon Owner Arrested For 2022 Arson At Newburgh Mall: DA

TOWN OF NEWBURGH, NY — A suspect in a 2022 arson case has now been charged, according to the DA.

Orange County District Attorney David M. Hoovler announced that 50-year-old Dao Duong, of Walden, was arrested by Town of Newburgh police and charged with third-degree arson, second-degree insurance fraud, second-degree attempted grand larceny, second-degree criminal mischief, and first-degree falsifying business records.

Duong was released after arraignment in the Town of Newburgh Court, and ordered to appear again on June 23.

According to court filings, on the morning of August 16, 2022, a security guard at the Newburgh Mall saw water flowing from the front of Nail FX, a nail salon in the mall.

Winona Lake firefighters responded to the mall and forced their way into the nail salon, where they found signs of a fire that had been extinguished by the interior sprinkler system.

The fire and resulting water damage resulted in extensive property loss to the Newburgh Mall.

The Town of Newburgh Fire Investigation Unit, along with the Town of Newburgh Police Department, the New York State Department of Financial Services, Fraud Bureau, Arson Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives, responded to the scene and conducted an investigation into the origin and cause of the fire. They found that the fire was incendiary and intentionally set.

Duong, who was the owner of Nail FX and the only person with access to the buiness at the time of the fire, filed insurance claims after the fire, investigators said.

An investigation found that, at the time of the fire, Duong owed over $100,000 in back rent, according to prosecutors.

"Additionally, the defendant was in a perilous financial situation, with extensive credit card debt and a comingling of personal and business bank accounts, including the conversion of funds received in small business loans and grants for her own personal use," the DA's Office said. "At the time of the fire, certain federally subsidized business loans were coming due."

The insurance company denied the claim after determining that the fire was set by Duong or someone else on her behalf.

The long-term investigation was conducted by the Town of Newburgh Police Department, in collaboration with the Orange County District Attorney's Office, the Hudson Valley Arson and Explosives Task Force, the Town of Newburgh Fire Investigation Unit, the New York State Department of Financial Services, Fraud Bureau, Arson Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives

"Arson, by its nature, is an incredibly challenging crime to investigate," Hoovler said. "It takes the herculean efforts of highly trained law enforcement professionals to piece together the very evidence that is sought to be destroyed. Where, as here, it is alleged that these dangerous crimes are committed for pecuniary gain, the loss of property and unreasonable risk posed to life is unconscionable. We will continue to work closely with our law enforcement partners to uncover insidious crimes like those alleged in this case."

"The Town of Newburgh Police Department is proud of the efforts of the officers and detectives that responded to and investigated this case," Lieutenant Matthew Nadolny of the Town of Newburgh Police Department said. "We are grateful for the interagency cooperation and assistance received from the Orange County District Attorney's Office and their investigators, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York State Department of Financial Services in securing an arrest in this case."

Federal officials said allegations go far beyond fraud, and are by no means a victimless crime.

"Intentionally setting a fire for personal gain puts lives at risk— from first responders to innocent members of the community— and erodes the trust and safety we work hard to uphold," ATF New York Special Agent in Charge Bryan Miller said "Arson is not only criminal—it has real consequences for public safety, property, and insurance integrity. This arrest reflects the strength of our partnership with ATF NY’s Hudson Valley Field Office, Orange County District Attorney's Office, Town of Newburgh Police Department, the Hudson Valley Arson & Explosives Task Force and the New York State Department of Financial Services. We are proud of the work done by all involved in this investigation, and this arrest sends a clear message: acts of this nature will not be tolerated."

The case is being prosecuted by Executive Assistant DA Ryan Greenbaum and Assistant DA Amanda M. Bettinelli, Chief of the Hudson Valley Arson and Explosives Task Force.