Remer Bar Owner and Girlfriend Charged With Torching Pub for $700K Payout

More than 16 months after flames tore through The Pub on Highway 200 in Remer, Minnesota, the bar's owner and his girlfriend are facing arson and insurance fraud charges tied to the blaze. Kory Wagner, 52, and Heather Pero, 36, were arrested on Cass County warrants and made their initial court appearances Thursday, accused of setting fire to the small-town watering hole in a bid to collect a $700,000 insurance payout.

According to court documents cited by FOX 9, Wagner is charged with aiding and abetting first- and second-degree arson along with attempted insurance fraud, while Pero faces aiding and abetting first- and second-degree arson charges of her own. Both were held at the Itasca County Jail following their arrests, according to KAXE. Wagner lives in nearby Hill City, while Pero resides in Grand Rapids, according to KARE 11 — both communities not far from the Cass County bar that burned.

A Sunday Morning Fire on Highway 200

Emergency dispatchers received the first 911 call reporting a structure fire at The Pub at roughly 5:30 a.m. on Sunday, April 27, 2025, per Y105FM. Firefighters from the Remer Fire Department and the neighboring Longville Fire Department both responded to battle the blaze, illustrating the kind of mutual aid rural northern Minnesota departments routinely lean on for commercial fires, as Lakeland PBS reported at the time.

Investigators later determined the fire started in a storage room and the kitchen. They was ignited by a person using an open flame on a flammable liquid, according to the seed reporting from the station. Officials said the ignition liquid was consistent with petroleum substances such as kerosene, diesel fuel, or charcoal starters. Investigators also found the fire was not caused by any mechanical, electrical, or natural function of the building, ruling out accidental origins tied to the structure itself.

Suspicious Damage to a Gas Line

About a week before the fire, an employee reported a gas leak at The Pub. A repairman who responded found damage to a gas line that appeared to have been sanded down to cause the leak, according to investigators. The origin-and-cause investigation was conducted jointly by the Cass County Sheriff's Office and the Minnesota State Fire Marshal's Office, the agency that typically assists local law enforcement when commercial fires are suspected arsons.

Wagner and Pero told investigators they had stopped at The Pub in the early morning hours to grab food while driving home to Hill City after spending time at the Northern Lights Casino in Walker. Both admitted to being inside the building shortly before the 5:30 a.m. emergency call, though Wagner denied smelling smoke or gas while he was there.

Alleged Comments About Wanting the Bar Gone

Court documents allege Pero commented that she wished The Pub would burn down and, according to the criminal complaint, asked an employee why she had not let the pub burn down. Another worker reportedly confirmed to investigators that both Wagner and Pero had made comments wishing the bar would burn. The complaint also alleges Pero offered a repairman $20,000 to burn down The Pub about a week and a half before the fire.

Wagner bought The Pub in March 2023 and put it up for sale by fall 2024. He admitted to investigators that business had been tough, that he had missed a payroll cycle for employees, and that the fire happened during his busy season — when he said he typically made the most money.

The Insurance Policy at the Center of the Case

Wagner confirmed the bar was insured for $700,000, a policy that was taken out about a month before the fire. Court documents indicate the coverage included $700,000 in building coverage and $127,200 in property coverage. Pero told investigators Wagner had taken out about a $280,000 loan on the business, while she separately believed he had paid around $300,000 to purchase it; she also told investigators Wagner had purchased the business on his own.

What Wagner and Pero Are Facing

Under Minnesota Statutes Section 609.561, Subdivision 3, first-degree arson using a combustible or flammable liquid carries a maximum penalty of up to 20 years in prison and a $20,000 fine. Separately, under Minnesota Statutes Section 609.611, attempted insurance fraud involving losses exceeding $35,000 — the category covering the alleged $700,000 scheme — carries a maximum penalty of up to 20 years in prison and a $100,000 fine, according to FindLaw's summary of state law.

Remer is a small city of 391 residents as of the 2020 U.S. Census, and the loss of a longtime bar and restaurant along its main highway would be felt in a community that size. Wagner and Pero have not been convicted of any crime, and both remain presumed innocent as proceedings continue in Itasca County District Court. The Minnesota State Fire Marshal Division also runs an arson tip hotline offering rewards of up to $5,000 for information in arson cases statewide.