The owner of a specialty store on the Ocean City, N.J., boardwalk was recently charged with arson and insurance fraud linked to a fire last year that destroyed nearly all of his inventory.

James F. Schatzle, 73, of Smithville, N.J., was indicted by a Cape May County grand jury, according to the Press of Atlantic City. The charges stem from a Sept. 29, 2009, fire at his Flags and Specialty Gifts store located in Ocean City.

Nearly two weeks before the blaze, Schatzle filed a report with Ocean City police alleging that two South Philadelphia mobsters assaulted him after an argument over the price of flags in his shop, according to the report. Police say the shop owner fabricated the assault story and a later story saying he watched the pair set fire to his store.

The indictment claims that Schatzle himself started the fire and then filed a false insurance claim. It also alleges that Schatzle gave false information to police to implicate the two “mobsters.”

Schatzle also faces charges of creating risk of widespread injury and false incrimination in addition to the arson and insurance fraud charges, the Press of Atlantic City reported.