Sacramento man sentenced to prison in arson fraud scheme after Alkali Flat business burns

A Sacramento man was sentenced to almost five years in prison Thursday in connection with mail and arson fraud.

Saber A. Shehadeh, 76, was found guilty June 14, 2018 of three counts of mail fraud after buildings he owned were destroyed in two fires, according to a news release issued by the U.S. Attorney’s Office for the Eastern District of California.

His buildings, plus a historical building where he ran a business called Tru Value Market, located on the corner of 10th and E streets in Alkali Flat, burned Dec. 27, 2009 and Aug. 15 2010, according to the release.

On Feb. 10, 2018, family member and co-defendant Jamal Shehadeh pleaded guilty to two counts of arson and admitted to setting the first fire. He was sentenced to 30 years in prison, according to the release.

Saber Shehadeh is believed to have made false statements to State Farm Insurance in an attempt to fraudulently claim insurance money after the fires, according to the release.

After the second fire, Saber became a partner in what was ostensibly a construction company that submitted inflated invoices for cleanup services to the insurance company, according to the release.

He received more than $1.4 million from State Farm and made false statements to the company during its internal investigation of the claims, according to the release.

Saber used the insurance money to pay off his mortgage, invest in a new business and shared some with family members, including Jamal, according to the release.

Before the fires, Saber bounced checks and overdrafted his bank account, while his liquor license was threatened by a prior food stamp fraud conviction, according to the release.

Co-defendant Brian Stone was convicted of 13 counts of mail and wire fraud April 17, 2018. He was sentenced to six years in prison on Sept. 27, 2018, according to the release.