Zev M. Siegel, 72, of Ambridge was arrested Wednesday on charges of mail fraud, use of fire to commit a felony and malicious destruction of property by fire, said the U.S. Attorney's Office, Pittsburgh.

He was indicted on the charges Sept. 20.

Siegel, president of New Alliance College/Alliance Institute, set fire to an Alliance building Feb. 9, 1997, in Ambridge, the indictment said.

He collected $378,185 in insurance proceeds.

If convicted, Siegel faces a maximum penalty of 50 years in prison and $1.5 million fine.

The FBI, the Bureau of Alcohol, Tobacco and Firearms, the Internal Revenue Service, postal inspectors and state police investigated the case..

Siegel agreed to a deal with the state Attorney General's Office in February 2000 that put the Alliance Institute and Alliance Adoption Agency out of business for violating the Consumer Protection Law and Charities Act.

Between November 1995 and February 2000, Alliance advertised that it could arrange adoptions of eastern European and Russian children for couples in the United States.

Potential parents claimed that Alliance misrepresented its ability to arrange adoptions and complete the process within a specific time frame, according to the agreement. The agency also lied about the number of children available for adoption.

The Mercer County couple paid $11,500 to Alliance but never received a child for adoption, the Attorney General's office said.