TOWN OF NEWBURGH, NY — A Walden woman has been charged in connection to a 2022 fire that caused extensive damage to the Newburgh Mall. Authorities say the fire was intentionally set as part of a fraud scheme.
Dao Duong, 50, was arrested by Town of Newburgh police and charged with multiple crimes, including third-degree arson, second-degree insurance fraud, attempted grand larceny, criminal mischief, and falsifying business records.
The charges stem from an incident on August 16, 2022, when a security guard noticed water pouring from the entrance of Nail FX, a nail salon owned by Duong. Firefighters responded and discovered a fire that had been extinguished by the mall’s sprinkler system, but not before causing major fire and water damage.
Investigators from multiple agencies—including the Town of Newburgh Police, ATF, and New York State Department of Financial Services—concluded the fire was intentionally set. Duong was the only individual with access to the salon at the time.
Authorities say Duong filed an insurance claim after the fire, but it was denied after the insurer determined the fire was deliberately started. Investigators discovered Duong was in severe financial distress, with over $100,000 in back rent, substantial credit card debt, and misuse of federally subsidized business loans intended for Nail FX.
“This is not just about property damage. Arson for financial gain endangers lives and shakes public trust,” said ATF Special Agent Bryan Miller.
The case was the result of a lengthy, multi-agency investigation, and is being prosecuted by Executive Assistant DA Ryan Greenbaum and Assistant DA Amanda Bettinelli, who heads the Hudson Valley Arson and Explosives Task Force.
Duong was released after arraignment and is scheduled to return to court on June 23.
