A massive fire caused chaos at a mall in the Hudson Valley nearly two years ago. Now, police say they finally know who did it and why.

Orange County District Attorney David M. Hoovler confirmed a local woman was arrested following a long investigation into a fire at a mall.

Woman Arrested Following Fire At Newburgh Mall

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Newburgh MArket Facebook
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On August 16, 2022, a Newburgh Mall security guard noticed water flowing from the storefront of Nail FX.

Firefighters made a forcible entry to the nail salon and discovered signs of a fire had been extinguished by the mall's interior sprinkler system.

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According to the Orange County DA's office, the fire and resulting water damage caused "extensive property loss to the Newburgh Mall."

Officials say the ensuing investigation determined the fire was "intentionally set."

Walden, New York Woman Arrested After Long Investigation

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OC DA
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Following a nearly two-year investigation, 50-year-old Dao Duong of Walden was arrested. Duong was the owner of the Nail FX business, officials say.

She was charged with arson, insurance fraud, attempted grand larceny, criminal mischief, and falsifying business records.

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Because her charges aren't bail eligible, she was released after an arraignment in the Town of Newburgh Court.

Nail Salon Owner "In a Perilous Financial Situation"

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Google
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According to investigators, at the time of the fire, Duong owed over $100,000 in back rent.

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"Additionally, the defendant was in a perilous financial situation, with extensive credit card debt and a comingling of personal and business bank accounts, including the conversion of funds received in small business loans and grants for her own personal use," the Orange County DA's office told Hudson Valley Post.

Filed an Insurance Claim After Fire

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OCDA/Canva
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Officials say that after the fire, Duong filed insurance claims related to the fire. The insurance claim was denied by the insurance company, which alleged the fire was set by the salon's owner or someone she knew.

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“Arson, by its nature, is an incredibly challenging crime to investigate,” District Attorney David M. Hoovler said. “It takes the herculean efforts of highly trained law enforcement professionals to piece together the very evidence that is sought to be destroyed."

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