New details about owner of home that burned in Lac La Belle

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LAC LA BELLE (WITI) -- A massive fire gutted an $800,000 home in Lac La Belle on Monday, June 10th -- and now, a FOX6 Investigation has found the fire comes as the home's owner is facing a $200,000 lawsuit in federal court.

It is believed that the residence was unoccupied at the time of the fire as the homeowners were accounted for.  No injuries were sustained from the incident.

According to the City of Oconomowoc Fire Chief, the house was a total loss.

The home is owned by Yobi Islami -- a registered sex offender since 1988.

Islami is also the defendant in a federal civil lawsuit filed by three former employees of "Around the Lakes Family Restaurant."

Islami and his family owned the Oconomowoc restaurant for more than 20 years, until they sold it earlier this year. The restaurant is well-known in Lake Country because it burned to the ground in a raging fire 13 years ago.

The lawsuit filed by these former employees accuses Islami of failing to pay them overtime for years.

The claims add up to more than $190,000.

On May 24th, a federal court clerk entered a default against Islami and the restaurant -- meaning the plaintiffs effectively win the case.

The only matter to be settled appears to be how much Islami owes his former workers.

All of this took place just a few weeks before Islami's house burned down on Monday.

Earlier this year, the Islami family sold the restaurant. Since then, Islami's younger brother, Benny Islami has opened a new restaurant -- the Burnt Toast Cafe.