Couple Charged With $38 Million Workers' Compensation Insura

 

Friday, May 01,2009, 10:52:09 PM   Click:

LOS ANGELES_A California couple were charged with the management of 38 million workers' compensation insurance fraud that supported a lavish lifestyle filled with luxury cars, shopping and houses in two states, announced Thursday.

Michael Petronella, 50 years, the coverage and the general contractor, and his wife, Devon Kile, 44, both of Laguna Hills, were arrested Wednesday. Each face 106 charges, including insurance fraud, theft and grand conspiracy to commit a crime. If convicted, they could receive prison sentences ranging from five years to 102 years.

Orange County Superior Court Commissioner Cheryl Leininger set bail for Petronella Kile and $ 3 million each and their court appearance scheduled for May 13, The Orange County Register reported on its website.

Joe Angelo, a lawyer Petronella, the newspaper said outside court that both defendants intend to plead not guilty and both should be able to raise funds for bail.

"We'll get to the money," said Angelo. "They have nothing to hide."

Prosecutors in the pair has defrauded the state compensation fund insurance, California's largest workers' compensation insurer, or 38 million dollars between 2000 and 2008 _ the biggest story of the State.

The couple filed 42 fraudulent claims for uninsured workers and wounded a total of $ 253,000 reported only one-tenth of $ 29 million payroll for the three companies, Petronella Corp., Western Cleanoff Inc Specialists Inc. and The roof, in the counties Orange and Riverside, authorities said.


The savings of not paying insurance premiums has helped the couple spend the money on five properties in California and Texas, buying a Bentley and two Ferraris and expensive to buy jewelry and clothing design shops, the authorities said.

Recovered from the couple's home and $ 500,000 have been in jewelry business more than $ 50,000 in cash and a request for Kile to be on the reality series "The Real Housewives of Orange County."

"I want to send a message there that these types of fraud to harm our economy, our infrastructure and our workers," said Orange County District Attorney Tony Rackauckas. "If you commit these crimes, May you look into the" real prison cell in the county of Orange. "

Rackauckas also said that the couple of their income than the reality on the state tax returns. Between 2005 and 2007, the state Petronella shorted approximately $ 2.3 million, while Kile did not claim $ 1.7 million of income, the authorities said.

They also spent about $ 2.1 million on their credit card for personal items, Rackauckas said.

California law requires employers to have workers' compensation insurance for their employees. By intentionally misrepresenting payroll and other figures of the state, employers can purchase insurance at a lower rate or to avoid buying at all, state officials said. The practice may give an unfair advantage over competitors who often see their insurance premiums increase.

"Employees deserve to be supported when they are injured at work, and this type of workers comp fraud is jeopardizing the protection of this important," said Insurance Commissioner Steve Poizner of California.