Homeowner charged in alleged arson scheme

Published 8:30 pm Saturday, July 5, 2025

Another man has been charged in connection with a residential fire that erupted at around 12:05 a.m. on Oct. 1, 2024, at 47 Alexander Road. Investigators determined that the fire was deliberately set as part of an insurance scheme cobbled together by a group of friends, including the homeowner.

Responders from the Pacific County Fire District 3 (Menlo), Raymond Fire Department, and South Bend Volunteer Fire Department responded to the report of a fully engulfed structure fire.

After dousing it, Pacific County Sheriff’s Office personnel and two fire investigators discovered railroad ties in the middle of the residence. Samples from evidentiary items seized from the home were sent to the Washington State Patrol Crime Lab. Gasoline residue was found.

Interviewees included Smitty Vargas, who owned the home, and his associate, George Collins, who was in charge of the property, as well as Joellen Beatty, who reportedly lived at the residence.

Alleged plot

Investigators allegedly learned that Vargas and Collins formed a plan to set the home ablaze because removing the structure was becoming a challenge. Vargas purchased the property on March 1, 2024, for $75,000 and wanted to have the residence removed via a controlled burn with local fire agencies, but the process was taking too long.

Images from inside the home before Vargas purchased it show it was in dire condition, with the ceiling caving in and garbage everywhere.

The trio’s plan was allegedly to torch the place and collect on an insurance premium that was in Beatty’s name. Vargas also purchased a $163,000 insurance policy on the home on Aug. 12, 2024.

Vargas was cornered about the scheme on June 11 during an interview with investigators Deputy Lucas Marthaller and Detective Kevin Acdal.

“I asked Vargas if he had ever had a conversation with Beatty about placing her car up by the house to get rid of it when the arson occurred, and Vargas replied, ‘Yeah, I said something like that at one time,'” Marthaller stated in court documents. “Vargas then explained, ‘If George [Collins] is going to do this, you might as well park the thing there with it.’ I then rephrased to Vargas that he was aware of Collins’ plan, yet still filed an insurance claim in the amount of $163,000.

“Vargas responded, ‘Yeah, that looks bad, doesn’t it?’ He then claimed that he didn’t know for certain that Collins had committed the arson when he originally filed his insurance claim. When asked for more clarity about the conversation between Collins and him about the arrangement of a motorcycle payment for arson, Vargas elaborated ‘What did get said was this, he said, something about everybody gets a do-over once, you know, and I said well I guess if something like that happened, there would be a lot more money laying around for me to build you [Collins] a bike, and from there he took off and ran with it.'”

Beatty and Collins provided law enforcement with substantial information about the scheme, which resulted in Collins’ arrest on June 16. He faces one count of first-degree arson and is being held in Pacific County Jail on $100,000 bail.

Arrest warrant issued

According to court records, Vargas now also faces one count of first-degree arson, and Pacific County Superior Court Judge Donald J. Richter issued a $50,000 warrant for his arrest. Vargas has been evading law enforcement for an extended period.

Marthaller and Acdal have been the primary investigators on the case, and Acdal notes in court records that they have tried to meet with Vargas multiple times. The duo dropped by his residence without warning on June 10, and he reportedly “acknowledged his involvement” but “was not taken into custody.”

The duo was scheduled to meet with Vargas on June 12 at the sheriff’s office, but he failed to show up.

“Multiple attempts throughout the investigation have been made to afford Vargas an opportunity to provide a statement,” Acdal stated in court documents. “Based on this behavior, it appeared Vargas was avoiding law enforcement. It wasn’t until Deputy Marthaller, and I showed up at his residence unannounced, we were able to speak with Vargas in depth regarding the arson.”

Vargas was booked into the Pacific County Jail Services at 10:46 a.m. on July 1. He faces one count of first-degree arson and is being held on $50,000 bail. He is also expected to face a charge for insurance fraud for filing a fraudulent insurance claim.

He appeared for a preliminary hearing in the Pacific County Superior Court on July 2 and Judge Donald J. Richter ordered that he be held without bail and ordered that Vargas undergo a competency evaluation.