Ringleader Pleads Guilty in Arson, Insurance Fraud Scheme

A Kansas City-area man has pleaded guilty to an arson and insurance fraud scheme that allegedly destroyed three houses from 2013 to 2019.

Wandale J. Fulton, 40, was accused of conspiring with six others to buy houses, create fake lease agreements, and burn the structures down to collect on inflated insurance claims. The group is also accused of defrauding a credit union by obtaining fraudulent car loans.

Fulton pleaded guilty on Thursday of one count of conspiracy to use fire in the commission of wire and mail fraud, one count of arson in the commission of a federal felony, and one count of conspiracy to commit bank fraud, according to the U.S. Attorney’s Office for the Western District of Missouri. In the plea agreement, Fulton admits that he was in possession of unregistered firearms despite being a convicted felon.

Prosecutors say the conspirators tried to defraud insurers out of $500,000 during the six-year period, but netted only $300,000.

According to an indictment handed down in 2019 and amended in 2020, Fulton established a company called Global Consultants in 2013 and used it to purchase properties from the Land Bank in Kansas City, Missouri.

Another conspirator, Jeremy Woods, was purportedly the owner of Global Consultants, but Fulton actually was in charge, prosecutors say. In August 2013, one of their co-conspirators renegotiated the mortgage on a home in Kansas City to prevent foreclosure. The unidentified conspirator then purchased a $130,000 insurance policy with Farmers Insurance.

The house was destroyed by fire in December 2014. Investigators determined the cause was arson. Nevertheless, Farmers paid $127,586 on the claim, most of which was used to pay off the mortgage. The unidentified conspirator, however, received a $14,409 payment from Farmers for “destroyed” personal property that actually never existed, the indictment says. Fulton was allegedly paid $7,000 from the insurance proceeds.

Fulton also filed a claim for purported vandalism to his own house in Lee’s Summit, Missouri in 2015. He told American Family Mutual Insurance Co. that three furnaces, three air conditioning condensers, a computer, a commercial lawn mower, a snow blower, tools, nine interior doors, toilets, furniture, a television and clothing had been stolen from his home. The house was going through foreclosure at the time.

Fulton stated on the claim that the total loss was $250,000 to $300,000. But Farmers refused to pay the claim after Fulton did not appear for an examination under oath, according to the indictment.

Also in 2015, Woods, doing business as Global Consultants, paid $25,000 for a house in Kansas City. He purchased an insurance policy from Foremost Insurance with coverage of up to $106,000 for the dwelling and $6,600 for lost rent.

Woods and Fulton drew up a false rental agreement that made it appear they had rented the home to Kirk Proctor for $550 per month. Proctor purchased a renter’s policy from Nationwide that paid up to $50,000 for the contents of the home.

The house was destroyed by fire on Jan. 2, 2017. Investigators determined a flammable liquid had been used to torch the home. Global Consultants filed a claim for a total loss of the structure. Proctor also filed a claim to Nationwide seeking $47,623 for the contents of the home. The insurer paid $1,500 for temporary housing.

Proctor never lived at the home, according to the plea agreement. An investigation revealed that Missouri Gas Energy had never turned on service to the house. Proctor withdrew his claim after Nationwide told him it was under investigation.

Woods attended an examination under oath as part of Foremost’s claims process, but he discontinued questioning after two hours. Foremost then denied the claim.

In 2016, the team purchased another Kansas City home from the Land Bank for $500 and purchased a $177,677 policy on the building. The home was destroyed in a suspicious fire in July 2017.

Nationwide paid $1,000 for rent payments that allegedly been lost and $44,500 to demolish the house and remove debris. The insurer later paid $138,500 for the total loss of the structure.

Prosecutors say the fraud team also defrauded Heartland Community Credit Union by using fraudulent documents to obtain a total of $121,150 for six car loans.

When Bureau of Alcohol, Tobacco and Firearms agents searched Fulton’s home they discovered three unregistered weapons, leading to an additional charges of possession of firearms by a convicted felon. Fulton had been convicted of manslaughter in 1999 and sentenced to 12 years in prison, but that sentence was suspended after he served only 120 days, according to court documents.

Proctor and Woods entered into plea agreements with federal prosecutors last September, court records show. They have not yet been sentenced.

The other three alleged conspirators were not identified in court documents.