Woman accused of arson and murder was previously suspected of insurance fraud

Tuan Nguyen admits to laughing at first when he got a text from his brother that their sister’s nail salon was burning.

The family is estranged.

“Anywhere she goes, there’s some kind of problem,” Tuan Nguyen told The Star. “We all stay away from her.”

Thu Hong Nguyen is accused of starting a blaze in her shop Oct. 12 that killed two Kansas City firefighters. She was also associated with two other fires, one of which was labeled arson. She was not charged in either of those fires.

In addition, The Star has learned that Hong Nguyen was suspected of insurance fraud in 2011. She has been taken to court at least twice over debts.

And she was living at a property owned by her brother in 2012 when a fire happened there.

Hong Nguyen is being held in jail in lieu of $2 million cash bond while facing a charge of first-degree arson and two charges of second-degree murder in the fire at 2614 Independence Blvd. Firefighters Larry Leggio and John Mesh died battling the blaze in the half-block-long building that housed Hong Nguyen’s L&N Nails & Spa.

Court documents do not suggest a motive for the fire.

On Thursday, agents of the federal Bureau of Alcohol, Tobacco, Firearms and Explosives searched her house in the 3500 block of St. John Avenue.

Meanwhile, Gracie Louis was trying to pick up the pieces of her life after losing her business and home in the fire. The woman operated a clothing, food and electronics store on the ground floor of the Independence Boulevard building for four years and lived in a small apartment in the store. There were other apartments on the upper floors.

Louis said she didn’t know Hong Nguyen well and that the woman was not very friendly.

Louis said the fire scared her.

“It’s terrible,” she said. “You don’t know when someone is going to do something like that. How can you start a fire when there are children and old women and old men living just upstairs?”

Louis had no insurance and has no family in Kansas City. The Weston Christian Church has given her temporary shelter. Donations may be made to her through the church, 540 Washington St., Weston, MO 64098.

Court documents say Hong Nguyen was associated with two previous fires. One occurred in July 2013 at her work station at the former Nails USA salon in Lee’s Summit. At the time, authorities ruled the fire accidental.

A January fire in a vacant apartment above her Independence Boulevard salon, which also damaged the salon, was ruled an arson. Hong Nguyen was not charged in that fire.

Hong Nguyen told authorities investigating this month’s deadly fire at the same building that she had received insurance payouts from the two earlier fires.

In 2011, a Farmers Insurance Co. agent in Olathe filed a suspected insurance fraud report against her with the National Association of Insurance Commissioners.

The agent cited “multiple recent theft/vandalism claims” against Hong Nguyen’s auto insurance policy. It was not clear if any further action was taken.

About that time, Hong Nguyen, the mother of four children, was divorced from her husband and needing a place to live, Tuan Nguyen said.

He said he allowed his sister to stay in a rental house he owned near Seventh Street and Indiana Avenue. That led to a falling out between the siblings.

Tuan Nguyen said his sister got her name added to an insurance policy he had covering the property. Not long after that, a fire occurred at the house. Tuan Nguyen said it was attributed to a candle. The house was damaged but not destroyed.

Tuan Nguyen said he believed his sister received a payment from the insurance company for lost possessions, but he did not know how much. He said the incident caused his insurance premiums for the house and a business property he owns to increase. He said he and his sister “got in a big argument.”

“She said no, she didn’t do it,” Tuan Nguyen said of the fire. “I said, ‘I’m not going to talk to you no more.’ ”

Tuan Nguyen said he and his siblings grew up in Kansas City. Their parents also live here but do not speak English. Tuan Nguyen said his brother also is estranged from their sister. The brother declined to talk to The Star.

L&N Nails & Spa had a valid business license, and Hong Nguyen is personally licensed to perform hairdressing and manicuring, according to state and city records.

But court records show Hong Nguyen has been taken to court at least twice for debts. The city of Kansas City this year sued her for more than $379 in unpaid taxes. She did not show up in court but paid the money in June.

A bank credit company won a judgment against Hong Nguyen in 2007 for more than $3,308 in debt.

This story was originally published October 29, 2015 at 5:01 PM with the headline "Woman accused of arson and murder was previously suspected of insurance fraud."