Historic Minnesota Resort Owner Charged with Arson and Insurance Fraud

The owner of a historic Minnesota resort has been charged with arson and insurance fraud more than a year after a fire destroyed the property.

Bryce Campbell, 41, of Two Harbors, Minn., was taken into custody last Wednesday in Southfield, Mich. for allegedly setting a fire on Feb. 6, 2024 that resulted in a total loss of the popular Lutsen Lodge. The lodge is located off Lake Superior in northwest Minnesota.

Campbell faces three felony counts of arson and one felony count of insurance fraud. He is currently in custody in Oakland County (Mich.) pending extradition to Minnesota.

The Minnesota Department of Public Safety’s Bureau of Criminal Apprehension (BCA) officially announced Campell’s arrest at a press conference on Dec. 4.

“This was a crime of selfishness. Bryce Campbell put his interests above the livelihood of his employees, the safety of the people that were in the building at the time, and the community that were there, and all of the Minnesotans that loved Lutsen Lodge for generations,” said BCA Superintendent Drew Evans.

A criminal complaint released Wednesday paints the picture of a resort owner in financial distress in the weeks and months leading up to the fire.

Campbell, a Canadian citizen, purchased Lutsen in August 2018 for $6.75 million. He later acquired another lodge, Superior Shores Resort, in January 2020 for $14.5 million.

Campbell increased Lutsen’s insurance policy through carrier Auto-Owners Insurance in the years preceding the fire, the complaint says. In August 2022, Campbell increased the policy for the 140-year-old property from $8.5 million to $11 million. In May 2023, the policy increased to $13 million.

By January 2024, Campbell’s businesses were carrying debts of more than $14 million, according to the complaint. Among the debts were $521,000 owed to the property’s previous owner and $467,000 in past due invoices to vendors.

Weeks before the fire, Campell was in discussions with his bank, National Bank Commerce (NBC) about forbearance, according to the complaint. NBC offered to float Campbell up to $500,000 to keep Lutsen operational until Campbell could find another bank. Campbell responded by asking for $1.1 million. Days later, the bank sent Campbell a default notice.

As January turned into February, Lutsen management expressed concerns that the property wouldn’t be able to meet payroll, the complaint shows.

On Feb. 2, Edward Vanegas, general manager of Lutsen, emailed Campbell, “[Everyone] else is wondering what is going on and what should I do? There isn’t any money available to do payroll next week and that is truly unfair to employees (me included).. .We can’t let employees work with the expectation of getting paid and then not pay them. It goes against my morals as a person and it’s illegal as a company.”

‘Burn it’

The complaint alleges Campbell exchanged Facebook messages with husband alluding to burning down the lodge.

On Jan. 31, Campbell replied “Just burn it” to messages from his husband about $466,000 they owed the Canada Revenue Agency.

“At this point we just take the insurance payout and use it to cover CRA,” Campbell’s husband said.

“Works for me,” Campbell said.

On Feb. 2, Campbell’s husband complained about a hockey team’s stay at the lodge. Campbell replied, “Burn it.”

One day before the fire, on Feb. 5, Campbell once more replied, “Burn it,” in a message to his husband about a negative review to the property.

The Lutsen caught on fire in the early morning of Feb. 6. An employee on premise first spotted smoke arising from the lobby. The employee made it out of the property unharmed, and no guests were staying at the property that night.

Campbell filed a notice of loss to Auto-Owners on the day of the fire, reporting a total loss, the complaint shows. On Oct. 9 and 18, 2024, Campbell signed and submitted a sworn statement and proof of loss attributing the loss to a fire of unknown origins.

The insurance claim totaled at least $16.5 million, according to the complaint.

The Minnesota Minnesota BCA allege that Campbell was at Lutsen the night of the fire and may have used fire accelerants. In the weeks before the fire, Campbell searched online for fire accelerants, including Swissmar fire gel, the complaint says.

The State completed the investigation on the origins of the fire in November, determining that it began in the southwest basement area above the boiler room and beneath the lobby, but that the method by which the fire started is undetermined.

The complaint alleges Campbell was at the Lutsen the night of the fire. Campbell said in proceedings with insurance investigators that he was there to pick up personal items.

“Our investigators have worked tirelessly from the start of this case to follow the evidence and bring the public answers,” said State Fire Marshal Dan Krier. “Fire investigation is a complex science and takes time to gather all the facts needed to reach a conclusion. Even in cases like these where no one is injured, arson is not a victimless crime.”

Photo: Firefighters battle an overnight blaze that destroyed the Lutsen Lodge on the North Shore of Lake Superior, early Tuesday, Feb. 6, 2024, in Lutsen, Minn. (Edward Vanegas via AP)

Topics Fraud