Prosecutor Calls Arson Suspects 'Urban Terrorists'

June 10, 2005 -- -- Four people described by Indianapolis prosectors as "dangerous racists" and "urban terrorists" have been charged with setting a blaze that left one family homeless and damaged four other homes.

Authorities said Dennis Craig, 29; Michael Litel, 40; Doris Litel, 29; and James Holwager, 25 were involved in a May fire that was set in one home and spread to four neighboring houses on May 30.

The four belong to a gang called 2-1 Fatal, and Craig is its leader, police said. The home where the fire started belonged to a black family that Craig allegedly accused of spying on him.

No one was hurt in the fire, but the house was destroyed. In all, the fire department estimated the damage at $200,000.

Craig, who is white, and other members of the gang are "dangerous racists motivated by hate," Marion County Prosecutor Carl Brizzi said.

"They went out and they torched this neighborhood, jeopardizing lives and destroying hundreds of thousands of dollars worth of property. These folks really are urban terrorists," Brizzi said.

According to court documents, a confidential informant told investigators that Craig ordered the arson and told his alleged accomplices that he didn't want a black neighbor.

The prosecutor said he intends to work with the local U.S. Attorney's office to pursue federal hate-crime charges, because Indiana does not have an applicable hate-crimes law.

The four all face state chages of arson and conspiracy to commit arson. Craig, Michael Litel and Holwager also face a charge of criminal gang activity.

Investigators believe the gang is responsible for as many as 26 arson cases involving homes, garages and automobiles on the city's south side this year. Authorities say the gang is known for its anti-African-American language and graffiti.

Craig was arrested at his grandparents' Indianapolis home, where he had been sentenced to home detention for a gang-activity conviction. He was wearing an electronic monitoring device.

"My grandson is not racial. I raised that boy, and I know he's not racial," his grandmother Glenna Craig told The Indianapolis Star. "He has had black friends right here in my house."

Craig and Michael Litel were being held without bond. Holwager was being held on $100,000 bond, and bond was set at $30,000 for Doris Litel, who also remained in jail.

ABC News affiliate WRTV-TV in Indianapolis contributed to this report.