Peluso's offer to plead Shaun Brennan down to arson in the third degree with a sentence of 3-9 years is actually quite generous. By intentionally setting a fire for the purpose of making a profit (from the building's insurance) Brennan became guilty of arson in the first degree, which is a class A-I felony and carries a mandatory sentence of life in prison with the possibility of parole after 15 years. In addition he is also guilty of grand larceny in the second degree, a class C felony with a sentence of 3-1/2 to 15 years in prison, for fraudulently obtaining $50,000 from his life insurance company, in addition to however much money his business insurance paid for the building.
At his arraignment one of the charges Shaun Brennan faces is insurance fraud. The clerk fails to mention the degree of the charge, since he defrauded his life insurance company out of $50,000 he would be facing a charge of insurance fraud in the second degree, a class C felony with a sentence of 3-1/2 to 15 years in prison.