Executive Summary
- State investigators have ruled the July 2025 Elm Tree Diner fire as arson linked to a burglary.
- Two separate ignition points were found, one outdoors and one in the kitchen.
- Operators of the diner face over $181,000 in federal, state, and local tax liens.
- The business failed three state health inspections in the months leading up to the fire.
HOULTON, Maine — State fire investigators have officially determined that the July 2025 fire which destroyed the popular Elm Tree Diner was an act of arson connected to a concurrent burglary, according to findings released by the Maine State Fire Marshal’s Office on Thursday. The ruling comes as new details emerge regarding the financial and regulatory struggles facing the establishment’s operators.
State Fire Investigator Paul Mason confirmed the classification of the incident, stating, "We have evidence to support this as an arson." According to Mason, the investigation revealed that the blaze involved two separate ignition points. The fire was first detected outdoors, while a second fire erupted separately within the kitchen area. Firefighters on the scene reported hearing a gong inside the structure, indicating the activation of the interior sprinkler system.
Investigators also determined that a burglary occurred at the time of the fire, with various items reported missing from the premises. Mason noted that officials believe the two crimes are directly related. The authorities are currently seeking information from the public regarding both the break-in and the ignition of the fires.
While the criminal investigation proceeds, public records reviewed by the Bangor Daily News indicate the business was facing severe financial headwinds. Rene McGillicuddy, the owner of the building at 146 Bangor St., reported that operators Wendy and Wayne Shaw owe $14,000 in back rent. Although the Shaws operated the diner under an LLC since late 2022 and were reportedly in the process of purchasing the business, McGillicuddy confirmed the sale was never finalized.
Further documentation filed with the Aroostook County Registry of Deeds reveals that Wendy Shaw and the Elm Tree Diner are subject to multiple tax liens totaling more than $181,000. These debts include unpaid federal employee tax withholdings, state sales tax, and local property taxes. Additionally, state records show the Elm Tree Diner LLC was dissolved in December 2025 due to non-payment of fees.
Operational challenges were also documented prior to the incident. The Maine Department of Health reported three failed health inspections at the diner in 2025, with the most recent occurring in June, just one month before the fire. Inspectors cited multiple critical violations related to food safety, cleanliness, and cross-contamination risks.
Investigative Outlook
The reclassification of the Elm Tree Diner fire from a structural loss to a criminal arson case significantly alters the legal landscape for all parties involved. As law enforcement focuses on the link between the arson and the burglary, the substantial financial liabilities and regulatory failures uncovered provides a complex backdrop for investigators examining potential motives. The convergence of six-figure tax debts, eviction-level rent arrears, and the intentional destruction of property suggests a rigorous inquiry into insurance fraud and criminal liability is imminent.
It is important to note that while the fire has been ruled an act of arson, no specific individuals have been charged at this time, and any potential suspects are presumed innocent until proven guilty in a court of law.
