Insurance Fraud, Arson Charges Filed in Lutsen Resort Lodge Blaze
BY MN CRIME STAFF
Minnesota BCA agents have arrested the owner of Lutsen Resort Lodge in connection with last year’s fire that destroyed the historic property.
Authorities took 41-year-old Bryce James Campbell into custody in Southfield, Michigan on Wednesday Dec. 3.
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Campbell is charged with three felony counts of first degree arson and one felony count of insurance fraud and is being held in the Oakland County Jail awaiting extradition to Minnesota.
Investigators say the charges stem from the Feb. 6, 2024 fire that burned through the main lodge building along Highway 61 in Lutsen. Crews were dispatched at 12:24 a.m. after a night shift worker reported smoke rising through the lobby floor. Firefighters worked for three days to fully extinguish the blaze, which required demolition to fully extinguish the fire. No one was hurt, though the lodge contained about 30 guest rooms that served as temporary residences for visitors.
According to the complaint, Campbell arrived at the resort around 11:45 p.m. on Feb. 5 after leaving his home in Two Harbors. He told investigators he stopped only briefly to retrieve items from his office and denied having contact with anyone inside the building. However, surveillance video and phone records outlined in the filing show a white SUV consistent with a white Ford Explorer that Campbell drove at the time of the fire traveling past locations near Lutsen at 11:51 p.m., 11:52 p.m., 12:21 a.m. and again near Grand Marais at 12:38 a.m. Campbell told insurance investigators he was at the property for five to eight minutes.
The complaint also details how staff attempted to reach Campbell overnight as the fire spread. Phone records show his husband called him repeatedly between 1 and 2 a.m. and sent messages alerting him to the fire, describing flames moving to upper floors and asking him to wake up. Campbell eventually called back at 3:14 a.m. and stated he appeared at the resort, though staff told investigators they did not see him and Campbell never spoke with firefighters or deputies at the scene.
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State Fire Marshal investigators determined the fire originated in the southwest basement area above the boiler room but said the exact ignition method remains undetermined. The basement contained water heaters and boilers that had recently been serviced due to leaks and malfunctioning parts. During excavation of the basement weeks later, investigators found a wrench wedged beneath a door, preventing it from fully opening, and noted that one of the water heaters had been disassembled in a way not consistent with its condition before the fire.
Forensic testing also identified crystalline residue on components in the north water heater. Initial burn tests showed similarities to a type of gel fuel known as Swissmar, though later comparisons were inconsistent. Investigators said accelerants such as gel fuels can burn away during a fire and cannot be ruled out. Records recovered from Campbell’s phone show searches for “Sterno fuel,” “Swissmar,” “fondue fuel btu” and other flame related products in January 2024.
Financial records outlined in the complaint describe significant debt tied to Campbell’s resort companies. As of January 2024, Lutsen owed over $1.5 million in past due invoices to more than 80 entities as well as previous owners and local associations. Superior Shores Resort, another company also owned by Campbell, faced combined balloon payments of nearly $13 million due in June 2024. Business accounts for Campbell’s companies held minimal or negative balances in January and staff raised concerns about the ability to cover payroll.
The lodge’s insurance coverage had recently been increased from $8.49 million to $11 million in 2022 and again to $13 million in 2023. After the fire, Campbell submitted a proof of loss claim totaling at least $16.5 million and certified that the fire did not result from any intentional act on his part.
Some of Campbell’s messages recovered by investigators referenced the resort’s financial strain, including repeated comments using the phrase “burn it” in discussions about mounting debts and problems at the resort. In one exchange with his husband on Jan. 31, 2024, regarding tax debt owed to the Canada Revenue Agency, Campbell replied “Just burn it.” In another thread on Feb. 12, after the fire, he wrote “This is usually when I’d make my burn it joke…but karma didn’t like that.”
Campbell faces a maximum of 20 years in prison on each of the arson counts and up to 20 years on the insurance fraud charge. He will be returned to Minnesota after extradition proceedings in Michigan.
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