REMER, Minn. (FOX 9) - A northern Minnesota couple is accused of burning down their bar in April 2025 as part of an attempt to cash in on a $700,000 insurance policy after getting upside down in the business, court documents allege.
Local perspective:
Bar owner Kory Wagner, 52, and his girlfriend Heather Pero, 36, are facing charges related to the April 2025 fire at The Pub in Remer, Minnesota.
Wagner is charged with aiding and abetting first-degree arson, aiding and abetting second-degree arson, and attempted insurance fraud. Pero is charged solely with aiding and abetting arson in both the first and second degrees.
According to court documents, Wagner bought the bar in March 2023 and put it up for sale less than two years later in fall 2024.
Speaking with investigators after the fire, he admitted business had been tough, and he had missed a payroll cycle for employees.
What we know:
Wagner and Pero both admitted to being at the bar in the early morning hours, shortly before it went up in flames, but Wagner denied smelling any smoke or gas.
Speaking with investigators, Wagner said the fire happened during his busy season when he made the most money, and it had "really screwed him," court documents state.
However, he also confirmed the bar was insured for $700,000.
Insurance documents reviewed by investigators also showed the policy was taken out about a month before the fire. It also showed that he had an additional $127,200 in insurance for the property along with $700,000 for the building.
Pero told investigators Wagner had purchased the business on his own, and she believed he had paid about $300,000 for the business and had about a $280,000 loan out.
The backstory:
Investigators spoke with an employee who told them about an incident a week prior to the fire where there had been a gas leak at the bar. The employee called a man to come fix the leak.
The repairman told investigators that he found damage to a gas line that looked as if someone had sanded down the line to cause the leak.
According to the complaint, the repairman also claimed that Pero had approached him and offered him $20,000 to burn down the bar about a week and a half before the fire.
Dig deeper:
According to the complaint, when the employee reported the leak to Pero, the employee said Pero asked her why she just didn't let the bar burn down. The employee said Pero had made other comments in the past about wishing the place would burn down.
Another worker confirmed both Wagner and Pero made comments about wishing the bar would burn down.
Big picture view:
Investigators ultimately found the fire started in two spots: a storage room and in the kitchen. Officials said the fires were ignited by a flammable liquid – consistent with petroleum substance like kerosene, diesel fuel, charcoal starters, or other ignitable liquids.
Investigators found no evidence that the fire was related to any mechanical or electrical function of the building or that it had a natural cause.
Instead, investigators determined the fire was started by a human using an open flame, like a lighter or match, to ignite the flammable liquid.
The Source: Information from the Cass County Sheriff's Office and Minnesota court documents.