The father of three children killed in a fire that swept through the family’s home in March 2003 was arrested Thursday on suspicion of first-degree murder and arson.
   Timothy Paul Nicholls, 34, is suspected of setting the fire at the family’s Village Seven home that killed his stepson and two daughters.
   A 4th Judicial District grand jury indicted him Wednesday on 18 counts that also included child abuse resulting in death and drug use. He was arrested at work on a construction site near Divide.
   Although the indictment doesn’t say why the fatal fire was set, it says the family was having financial problems and Nicholls attempted to collect on a $250,000 insurance policy covering the home.
   His estranged wife, Deborah Lee Nicholls, 38, also was indicted and arrested at her central Colorado Springs home on suspicion of attempted theft and drug possession.
   She was not indicted in her children’s deaths.
   The indictments came after a 13-week grand jury inquiry into the deaths of Jay Nicholls, 11, and his sisters, 3-year-old Sierra and 5-year-old Sophia.
   “Tim Nicholls knew that by set- ting fire to his house that he was practically certain to cause the deaths of Jay, Sophia and Sierra Nicholls,” according to the indictment.
   It doesn’t say how the fire was started.
   The fire was ruled an arson in July 2003, but the investigation continued for two years without arrests. Colorado Springs firefighters were called to the Nicholls’ house at 4107 Undimmed Circle about 2 a.m. March 7, 2003, after a neighbor called 911.
   Timothy Nicholls, who reportedly jumped from a second-story window, was in the front yard when firefighters arrived.
   The blaze started in the living room on the main level and raced up the stairway to the hall, where Jay’s body was found. His sisters were found in nearby bedrooms.
   Sierra was pronounced dead at Memorial Hospital about 45 minutes later. Sophia went into a coma and died about 17 hours later.
   All died from smoke inhalation.
   The family’s dog also died in the fire, which firefighters extinguished within 35 minutes.
   A smoke detector on the basement level of the home did not have a battery, fire investigators said.
   Timothy Nicholls was hospitalized for burns and released four days later.
   Deborah Nicholls wasn’t home at the time of the fire, authorities said. She arrived home from work about 2:45 a.m. to find firefighters there.
   The children’s deaths were ruled homicides in July 2003, when the fire was determined to be arson.
   It remained an ongoing investigation for years.
   “In January, the Colorado Springs Police Department and my office began meeting, coming up with new investigation strategies and working the case again from new angles with much more diligence,” said District Attorney John Newsome, who took office in January.
   He declined to say whether new evidence had been discovered and presented to the grand jury.
   If convicted, Timothy Nicholls could face the death penalty or life in prison without parole.
   The 18 counts he’s facing include three counts of first-degree murder; three counts of first-degree murder of a child less than 12 years old by someone in a position of trust; three counts of child abuse resulting in death and three counts of fourth-degree arson.
   He’s also facing third-degree arson with intent to defraud and attempted theft in connection with the insurance claim.
   Deborah Nicholls faces charges of possessing cocaine and methamphetamine and unlawful use of meth.
   She’s also facing attempted theft in connection with allegedly trying to defraud her insurance company out of $660 for her car. The indictment says she told the insurance company her 1997 Chevrolet Camaro had been damaged by the fire when it had not.
   If convicted, she faces up to 7½ years in prison.
   She was jailed on $20,000 bond, while Timothy Nicholls was being held without bond.
   Since the fire, the couple has filed for divorce. In July 2003, when they were still together, Deborah Nicholls told The Gazette the arson ruling could be wrong.
   “Maybe there isn’t an answer and it’s just a horrible, tragic accident. Nobody killed my children, especially my husband. We miss them so much. Every day it gets worse,” she said.
   “My kids were awesome. I taught them all how to tell a joke before they were 2. I taught them giggling and twirling were more important than homework and chores. You’ve got to know how to twirl and giggle.”
   Four of Deborah Nicholls’ children have died. Her infant son, Spencer Baumgardner, died in September 1993 from SIDS, according to an autopsy.
   The children are buried side by side in Woodland Park.
CONTACT THE WRITER: 636-0366 or
   awillett@gazette.com
   
TIMELINE


   
March 7, 2003:

Jay Nicholls, 11, and his two sisters, Sophia, 5, and Sierra, 3, die in a house fire at 4107 Undimmed Circle.
   
July 2003:

Investigators rule the fire arson but do not accuse anyone of setting the fire.
   
July 21, 2005:

Timothy Nicholls is arrested on suspicion of first-degree murder and arson in the deaths of his children. The children’s mother, Deborah Nicholls, is arrested on suspicion of theft.