A Northern California government official is at the center of a stunning insurance fraud investigation involving arson, deception, and over $200,000 in alleged illegal gains.

Live Oak Vice Mayor Aaron Pamma and two others have been arrested and charged in connection with a plot to set fire to rural property in Butte County to illegally collect insurance money, as KCRA reports.

The criminal investigation began after a fire severely damaged a farmhouse on Ord Ferry Road in Butte County on Feb. 17, 2024. CalFire investigators began looking into the fire's cause and soon connected it to an alleged scheme involving multiple parties with financial ties to the property.

Gurtej Singh, 28, of Yuba City, originally purchased the farmhouse and adjacent orchards in April 2023. Just one month later, Singh transferred half of the property ownership to Aaron Pamma, 30, vice mayor of the city of Live Oak, and Simren Pamma, 28, of Sacramento. All three are now facing felony charges stemming from the fire and subsequent insurance claim.

Property transfer preceded insurance policy

Singh obtained an insurance policy for the farmhouse in November 2023, approximately three months before the fire occurred. Investigators allege that Singh made false or misleading statements when applying for the insurance coverage.

Following the fire in February, Singh and Aaron Pamma allegedly provided additional false information to the insurance company during the claim process. Authorities claim that these falsehoods played a central role in the suspects' ability to collect on the policy.

After the insurance payout, the trio reportedly sold the damaged property and walked away with over $200,000 in profit. Prosecutors say this windfall was the product of planned fraud, not a legitimate loss recovery.

Officials charge multiple suspects

Gurtej Singh has been charged with a wide range of crimes, including arson, filing a false insurance claim, committing perjury, and engaging in wire fraud. Aaron Pamma faces similar accusations, including arson, perjury, and conspiracy to commit insurance fraud. Simren Pamma has also been arrested and charged with arson and conspiracy.

The Butte County District Attorney's Office announced the arrests on Thursday. While an exact date of the arrests was not provided, authorities confirmed that all three suspects were taken into custody as a result of the growing fraud investigation. The case also involves a fourth suspect, Javier Molina-Bravo, 37, reportedly affiliated with a business named Big Dog Handyman. Molina-Bravo is accused of conducting renovation work on the farmhouse before the fire and paying for construction materials using checks from a fake bank account.

Manhunt for contractor continues

Molina-Bravo is currently wanted by authorities. He has been charged with check fraud and other related felonies but failed to appear at a scheduled court date, prompting a search for his whereabouts. According to investigators, Molina-Bravo’s role appears connected not to the fire itself but to financial irregularities surrounding the property's renovation work. Checks tied to a non-existent bank account allegedly helped facilitate construction before the fire.

In the wake of the arrests, the City of Live Oak issued a statement acknowledging Vice Mayor Aaron Pamma’s legal troubles but did not indicate whether any immediate action would be taken regarding his position on the City Council.

City addresses scandal, legal defense announced

“The Live Oak City Council and staff remain steadfast in their commitment to responsible governance and continued progress for the community,” the city said in a statement released following the arrest. “The city’s focus remains on delivering essential services and moving forward with key priorities that benefit the residents of Live Oak.”

Attorney Michael R. Barrette, representing Vice Mayor Pamma, responded forcefully to the allegations. “Vice Mayor Pamma would like his constituents to know that these charges have no basis in fact or law,” Barrette said. “He and his brother Simren Pamma will fully and vigorously defend these charges in court and will prove they are innocent of any charges.”

As legal proceedings begin, residents of Live Oak and Butte County are closely watching for developments in the case, which has cast a harsh spotlight on local leadership and renewed concerns about financial crimes in rural communities.

Lessons to learn

Cases like this one serve as a reminder that white-collar crimes can affect communities of all sizes and backgrounds. Here are some lessons the public can take away from this incident:

1. Verify property transactions and partnerships thoroughly. Changes in property ownership, particularly when followed by insurance changes and sudden damages, should always be scrutinized. Regular audits and transparency in real estate dealings can help detect suspicious activity before fraud occurs.

2. Reputable business practices matter. Hiring known, licensed contractors and verifying their payment methods can reduce risk of falling victim to check fraud or unfinished work. In this case, checks from a non-existent account facilitated criminal behavior.

3. Stay informed and hold public officials accountable. When those in public office are accused of criminal activity, it can erode community trust. Vigilant civic engagement and local oversight are critical to ensuring ethical and transparent governance.

Why this story matters

This story highlights the serious legal and ethical consequences of financial crimes, even at the local government level. The arrest of an elected official brings into question the integrity of public leadership and the systems in place to monitor them.

Furthermore, it underscores the need for continual oversight in property transactions and insurance claims to deter organized fraud.