Updated: Four men indicted in arson, attempt to collect insurance money

Updated 5:48 p.m.

Michael Lee, Sidney Terry, and Jason Varona – those three men were arrested for a fire at the Weekend Sofa Outlet last August.

"Going into it within about 30 minutes, we knew the fire was suspicious,” said Roanoke Fire and EMS Chief David Hoback.

Federal agents are still looking for who they think is the mastermind and Vice President of the store, Jay Aneja. According to an indictment, Aneja hired a man to set fire to the store, Michael Lee. Lee then recruited the two other men.

Julia Dudley, United States Attorney, said it was all "To set fire to the business's inventory in order to collect insurance money."

In a news conference on Friday, ATF agents and local law enforcement explained the men’s scheme.

Before the fire was set, the hired men loaded a truck full of furniture to sell – a loss for Aneja that could be reported for more insurance money.

Ironically, Bart McEntire, an ATF agent, said Roanoke City’s Chief Joe Gaskins, saw the men loading the truck because he was in a nearby golf store. Because he saw that, police were able to piece the story together quickly.

“The box truck broke down along Interstate 64, forcing the three men to call Aneja who had to travel to almost the Louisa area to pick them up and then drive them back to Roanoke,” said Dudley.

According to the indictment, Aneja took Varona home, while Lee and Terry came back to the store and set fires in different areas inside.

Police think Aneja fled the country and has tried to recover nearly $140,000 in damages.

"As we stand here today, Mr. Aneja is still trying to collect that money,” said Dudley.

ATF agents say they’re seeing an increase in arson-for-profit crimes. But don’t get any ideas says McEntire. He says you will be caught.

"My message to the community and to people in economic times who think that arson is a crime they're gonna get away with to make a lot of money, if you striking that match is worth five years in jail, five years out of your life, go ahead,” he said.

If convicted, the men could face a lot more time. If they are charged on all counts, three of the men will have to serve at least 15 years in prison. The fourth man, Varona, could face a maximum of 25 years and/or a fine of up $500,000.

Terry has now been released on bond.

In an arraignment for Varona on Friday, it was announced he will be released on $10,000 unsecured bond, the court will appoint him an attorney.

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The United States Attorney Julia C. Dudley announced that four men have been charged in the Weekend Sofa Outlet Inc. business back on August 3, 2008. Dudley announced a 12-count indictment by a Federal Grand Jury.

Those men charged are Jay Aneja, 47; Michael Antwan Lee, 43; Sidney Montre Terry, 24; Jason Ronald Verona, 22 – all of Roanoke. They were charged with one count of conspiracy to commit mail and wire fraud and one count of conspiracy to commit arson.

According to the indictment, the business was selling furniture at 5327 –D Williamson Road. Aneja was the Vice President and Virginia Registered Agent, and he had signed business-related documents for the Weekend Sofa Outlet checking account.

In July 2008, Aneja recruited Lee to set fire to the business and allegedly offered him $3,000 to do it. It was Aneja’s attempt to collect insurance through the business’s carrier, Auto Owners Insurance Company.

Lee later recruited Terry and Varona to help him set the fire. When those three men got into the business, using keys and a security code, they loaded some of the furniture into a truck. That box truck was registered to Weekend Sofa Outlet.

Later, the truck broke down on Interstate 64 en route to Richmond. Apparently, the men were going to sell some of that furniture on the street. The men called Aneja for help, and when Aneja picked the men up and took them back to Roanoke, they left the truck on the side of the road. Aneja later had the truck towed back to Roanoke.

According to the indictment, Aneja dropped off Lee and Terry at a restaurant on Hershberger Road before taking Varona back to his home.

Lee and Terry made their way back to the furniture outlet where they used a flammable substance to set the fire in different areas of the building. When Lee and Terry left, they walked back to the restaurant and took a cab to Lee’s home.

Between September 2008 and November 2008, Aneja filed an insurance claim on behalf of Weekend Sofa Outlet to recover about $137,000. Those claims have not yet been paid.

Aneja has not been arrested and is believed to be outside of the country. If convicted on all counts, Aneja faces maximum penalty of up to 128 years in prison with 15 years mandatory imprisonment and a fine of up to $2,000,000.

Lee faces maximum statutory penalty of 75 years imprisonment with 15 years mandatory and a fine of up to $1,000,000.

Varona faces maximum statutory penalty of 25 years imprisonment and/or a fine of up to $500,000.

Varona will appear in federal court at 1:30 on Friday.