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Colorado Springs – A father accused of setting a fire that killed his three children made his first appearance in El Paso County District Court on Thursday.

Tim Nicholls, 34, was indicted last week by a grand jury on 18 counts of murder, arson, child abuse, theft and drug possession in connection with the March 7, 2003, fire at his tri-level home. He’s being held without bail.

Jay Nicholls, 11, Sophia Nicholls, 5, and Sierra Nicholls, 3, died in the fire.

A fact sheet supporting the indictments says Nicholls “with knowledge that the fire was intentionally set” later tried to “deprive” American Family Insurance of more than $250,000.

The mother of the children, Deborah Nicholls, 38, was also in court Thursday. She was indicted on drug charges and attempted theft and is being held on $20,000 bail. She is due back in court next week for a bond hearing.

According to a search warrant dated the day of the fire, investigators said the fire “most probably” began in the main living room of the house at 4107 Undimmed Circle.

Deborah Nicholls told investigators that before she went to a karaoke bar that evening, she lit several candles, the affidavit says.

The document quoted her as saying: “I lit the candles, and I’m responsible for what happened.”

Deborah Nichols has not been indicted for any alleged crimes related to the fire or the deaths of her children.

The affidavit says that when Deborah Nicholls “arrived at the scene she was concerned mostly for the condition of the back bedroom and the condition of her home computer.”

A month after the fire, an employee of a restoration company found a small plastic bag in the office of the home that tested positive for methamphetamine and cocaine.

Tim Nicholls’ defense attorney, Dennis Hartley, said Thursday the transcript of the 13-week grand-jury testimony comprises 2,000 pages. Tim Nicholls is due back in court Sept. 30 for a bail hearing.

Staff writer Erin Emery can be reached at 719-522-1360 or eemery@denverpost.com.

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