Feds say Paradise man made false rental claims to get Camp Fire disaster money

Authorities have unsealed a federal grand jury indictment charging a Paradise man with filing documents to receive fraudulent benefits as a result of the 2018 Camp Fire that nearly obliterated the Butte County town of Paradise.

Daniel John Connelly, 55, was indicted Dec. 12 on a charge of fraud in connection with a major disaster, but the indictment remained sealed until Monday morning while officials sought to arrest him.

Sacramento County jail records show Connelly was booked Friday afternoon and is being held without bail. A federal magistrate judge ordered the records unsealed Monday morning.

Connelly is alleged to have claimed that he rented a Pearson Road home at the time of the November 2018 wildfire, and received $2,663 in cash payments from the Federal Emergency Management Agency.

Although Connelly had once rented the home, court documents say he was not living there nor renting it at the time of the blaze, the deadliest and most destructive in California history.

The total amount he allegedly defrauded from the government is relatively minor; the potential penalty is not. Court files say he faces up to 30 years in prison, a fine of up to $250,000 and supervised release for between five years to life.

Connelly made a brief appearance Monday before U.S. Magistrate Judge Deborah Barnes and pleaded not guilty.

This story was originally published March 9, 2020 at 12:19 PM.