Leader of insurance fraud and arson scheme sentenced to 15 years

EAST ST. LOUIS, Ill. – A district judge sentenced Evette “Betty” Osuegbu, 62, of Granite City, to 15 years in federal prison for her role in a string of arsons and insurance fraud stretching from 2014 to 2023.

Following a five-day trial in December, a jury seated in East St. Louis found Osuegbu guilty of all 15 counts of an indictment charging conspiracy to commit mail and wire fraud, conspiracy to commit arson, and use of fire to commit a federal felony.

“Arson is an inherently dangerous crime,” said U.S. Attorney Steven D. Weinhoeft. “Firefighters often don’t know if people are inside the buildings and potentially place their lives at risk on every call. Additionally, arsons cause unnecessary blight, raise insurance rates, lower property values and can harm neighbors. We will continue to seek heavy penalties for these destructive and dangerous crimes.”

Osuegbu’s co-defendant, Rufis Jefferson, 48, of Venice, previously pleaded guilty to all counts of an indictment that included conspiracy to commit arson and conspiracy to commit mail and wire fraud.

Testimony at trial included Osuegbu’s role in a romance scam against an intellectually disabled person and exploiting his illiteracy to obtain property and insurance in his name. After Osuegbu directed Jefferson to burn the East St. Louis home, she sued the insurance company for a larger payout, using the name of her intellectually disabled victim as a plaintiff, unbeknownst to him. The insurance company settled and Osuegbu retained her victim’s share of the payout.

“Arson and insurance fraud are not victimless crimes, and the sentence imposed reflects the seriousness of the offenses committed. This was a dangerous, deliberate, and brazen scheme orchestrated by Ms. Osuegbu, putting the public at risk for personal gain. I want to thank our law enforcement partners, including the Office of the Illinois State Fire Marshal, for their collaborative work in this case. Justice has been served, and our community is safer as a result,” said ATF Chicago Special Agent in Charge Christopher Amon.

The jury also heard testimony from a father with a young child who lived next to Osuegbu in an apartment complex in St. Louis. On New Years Eve, 2022, this witness called in a fire in Osuegbu’s unit. Firefighting efforts stopped the spread of the fire but left the witness to live in a smokey and moldy apartment for months. The jury further heard that Osuegbu had directed Jefferson to burn the apartment while she established an alibi at a local casino. Osuegbu received insurance payouts for alleged losses in the fire and was put up in a local hotel. 

The occupant of a Florissant, Missouri, home testified to a scam against her to convince her to raise her renter’s insurance and to be away from the home when Jefferson set it on fire. This witness testified that Osuegbu threatened to “gut” her if she did not get her cut, prompting this witness to pay off Osuegbu in installments over the course of many months. 

Jurors also heard recordings of Osuegbu planning arsons at properties in Granite City and Venice.  Osuegbu was heard to direct others how to avoid cameras and cell phone tracking and how to best set a fire that is difficult for experts to investigate. The ATF intervened before these properties were burned.

ATF Chicago led the investigation, and Assistant U.S. Attorneys Kevin Burke and Peter Reed prosecuted the case.