Scammed to Death: H. H. Holmes' Insurance Fraud Scheme Pt. 1

Podcast: Scams, Money, & Murder
Hosts: Vanessa Richardson, Carter Roy
Date: October 9, 2025

Main Theme

This episode, the first of a two-part series, dives into the twisted partnership between infamous serial killer H.H. Holmes and his accomplice Benjamin Peitzel. The hosts trace Holmes’ early life, his penchant for scams and fraud, and how his relationship with Peitzel led to an audacious life insurance scheme—one of many sinister moves in Holmes' criminal repertoire.

Key Discussion Points & Insights

1. Background of H.H. Holmes (aka Herman Mudgett)

• Early Fascination with Death

  • As a child in New Hampshire, Holmes (born Herman Mudgett) was bullied and forced to confront a skeleton, sparking a lifelong obsession with death.

    "They put the skeleton's hands on his face, trying to frighten him...He became intrigued by the bones, not scared of them. If there was a moment that sent Herman down his eventual path, it might have been this one." — Vanessa Richardson [05:32]

• Education and Early Schemes

  • Attended medical school at the University of Michigan.
  • Was exposed to the use of grave robbing for cadavers, fueling his idea for insurance fraud—staging deaths using stolen bodies.

    "He and a friend came up with a plan to defraud an insurance company...create a fake identity for it, take out an insurance policy, stage an accidental death, and then voila, they could collect." — Vanessa Richardson [08:26]

• Adoption of Alias and Early Criminal Activity

  • After a troubled marriage, he became Dr. H.H. Holmes and relocated to Chicago.
  • Linked to disappearances in New York and Philadelphia, but always slipped away before law enforcement could act.

2. The Birth of the Murder Castle

• Holmes took over Holton’s Drugstore and built a bizarre, fortress-like building with trapdoors, chutes, and hidden rooms—the later infamous "Murder Castle."

  • Routinely evaded paying workers and vendors by firing them and reneging on debts.

    "He wanted to keep the rest of the world in the dark about what he was up to...He did this with everyone from carpenters to furniture vendors." — Carter Roy [13:05]

• First Encounter with Benjamin Peitzel

  • Likely met Peitzel—a struggling Chicago carpenter with a checkered past—when hiring for construction.
  • Their initial connection may have been over a coal bin Peitzel had invented and was exhibiting.

3. Partnership of Crime: Holmes & Peitzel

• Peitzel’s Background

  • Married with five kids, Peitzel was "morally flexible" and open to illegal ventures, especially for financial stability.
  • Shared a close relationship with Holmes, even living together for a time.

• Fraudulent Activities and Early Schemes

  • Peitzel pulled Holmes-inspired scams, including one involving bad checks and expensive suits. Holmes bailed him out of jail, cementing their partnership.

    "Benjamin wasn't too worried about the charges. He had his friend H.H. Holmes looking out for him." — Carter Roy [18:05]

4. The World’s Fair and Escalating Crimes

• Holmes’ Expanding Schemes

  • Attempted to turn his castle into a hotel for fairgoers, but likely never completed it.
  • Took out $60,000 in insurance on the building, then orchestrated a fire to collect the money; insurance companies denied his claim and began investigating him for arson.

• Move to Texas & More Cons

  • Holmes, along with Peitzel, moved to Texas after securing a property from Minnie Williams, his secretary/mistress, who then disappeared.
  • Ran mortgage and horse theft scams using aliases, fleeing Texas when authorities caught on.

• Plan to Fake Peitzel’s Death

  • The core insurance fraud plot: fake Peitzel’s death and collect $10,000 in life insurance—a huge sum for the era.

    "Holmes had been paying the premiums on Benjamin's policy for the last year. All they had to do was decide the time was right and they could spring into action." — Vanessa Richardson [23:51]

5. The Philadelphia Scheme and Its Twists

• Legal Maneuvering and In-Prison Confessions

  • Holmes, briefly jailed in St. Louis for fraud, told fellow inmate and outlaw Marion Hedgepeth about the scheme in exchange for a lawyer recommendation (Jephthah Howe).

• Execution of the Fraud

  • Peitzel, under the alias B.F. Perry, rented a Philadelphia office.
  • The plan: stage a laboratory explosion, use a cadaver to simulate Peitzel’s death, and collect the payout.

• Discovery & Identification of the Body

  • Peitzel’s burned and barely identifiable body was found after an apparent explosion.
  • Holmes and Peitzel’s daughter Alice positively identified the corpse, and the insurance company paid out.

• The Ultimate Betrayal

  • Holmes told Carrie Peitzel, Benjamin’s wife, that her husband was still alive and hiding, leading her on a false chase.

Notable Quotes & Memorable Moments

• On Trust and Betrayal:

  "Keep your friends close, but your enemies closer. It's not just a saying, it's a means of survival. Because in the world we're entering, trust is a trap and betrayal is often fatal."
  — Carter Roy [00:41]

• On Insurance Fraud Inspiration:

  "He and a friend came up with a plan to defraud an insurance company...At this point, the idea had taken root in his mind and he wouldn't be able to shake it off."
  — Vanessa Richardson [08:47]

• On Holmes & Peitzel’s Relationship:

  "The historical archives refer to Benjamin as an associate of Holmes, constantly in his orbit. And it sure seems like Holmes rubbed off on Benjamin."
  — Carter Roy [17:00]

• On the Philadelphia Murder:

  "The door was unlocked and when [Eugene] wandered in, he felt like something was wrong. He called out and nobody answered...they saw the real cause of the smell. It was a body, burned, disfigured and practically unrecognizable."
  — Carter Roy [29:27]

Timestamps & Important Segments

• 00:41 — Episode introduction, setting up the Holmes-Peitzel relationship and theme of betrayal.
• 04:32 — Holmes’ childhood, medical school years, and early scams.
• 13:05 — Construction of the Murder Castle and dubious hiring practices.
• 16:11 — Details on Benjamin Peitzel and his alliance with Holmes.
• 18:05 — Peitzel's arrest for fraud and Holmes’ support.
• 20:40 — The World’s Fair, insurance arson, and move to Texas.
• 23:51 — The decision to fake Peitzel's death.
• 29:27 — Discovery of Peitzel's (B.F. Perry’s) body and the insurance claim setup.
• 32:45 — Holmes' manipulation of Carrie Peitzel and hint of further betrayal.

Tone and Style

The hosts interweave dark humor, suspense, and clear-eyed analysis of historical sources. They openly acknowledge when archival materials conflict or details have been lost to time. The storytelling is vivid and carefully paced, highlighting both the gothic absurdity and grim reality of Holmes’ exploits.

Summary

Part one of “Scammed to Death: H. H. Holmes' Insurance Fraud Scheme” unpacks how Holmes, one of America’s most notorious serial killers, masterminded a series of frauds and manipulated his friend Benjamin Peitzel into the deadliest con of all. From Holmes’ macabre childhood fascination with death to his architectural monstrosity in Chicago and the insurance schemes that trailed him across the country, this episode methodically reveals not just the details of the cons, but the psychology of those who commit them—and those caught in their web.

Stay tuned for Part 2, where the aftermath of the insurance fraud and the unraveling of the case will be dissected.