A high school chemistry teacher is charged with insurance fraud and arson, after giving two failing students passing grades if they agreed to steal and burn her car so she could collect insurance money.

Aldine Senior High School's Tramesha Lashon Fox was $20,000 behind on car payments.

Roger Luna, 18, and Darwin Arias, 17, were failing Fox's class right up to their final exam, but by the end Arias received a 90 and Luna an 80, perfect passing grades.

Luna was arrested on Tuesday, with bail set at $10,000 and an arraignment scheduled for Thursday. Both boys were charged with arson.

Fire investigator Dustin Deutsch says on the last day of school, the boys took Fox's unlocked 2003 Chevy Malibu from a shopping mall to a wooded area, setting it on fire.

Fox reported the car stolen the very same day, after having just bought a 2005 Toyota Corolla.

School officials say Fox remains employed until the fire marshal's report is seen. The boys will likely be placed in an alternative school.