Background
The Baudelaires were a wealthy family that lived in the Baudelaire Mansion. The Mansion has several secret tunnels leading in and out of the building, including one that could be accessed from the apartment of Jerome Squalor and Esmé Squalor. The Mansion was burned in an arson fire, which also killed Bertrand and Beatrice Baudelaire. The Baudelaire orphans believe that Count Olaf set the fire to claim the Baudelaire fortune, which the children were to inherit when Violet came of age. However, Olaf implies that he is not responsible. In the film adaptation, Olaf is confirmed to be the arsonist.
Read more about this topic: Baudelaire Family
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