Top
Stories
Featured Article Data Bank Focus: Getting Them to Stay February 8, 2013
Featured Article Data Bank Focus: See Where Workers Are Saying 'See Ya' February 8, 2013
Featured Article Data Bank Focus: A Shrinking Pool of Job Candidates February 8, 2013
Featured Article Honoring Diversity the Hawaiian Way February 8, 2013
Featured Article Honoring Diversity the McDonald's Way February 8, 2013
Featured Article Defending Diversity February 8, 2013
Featured Article Retirement Showdown February 7, 2013
Featured Article Visa Program Sparks Debate—Again February 7, 2013
Featured Article Homeward Bound February 7, 2013
Blog: The Practical Employer Workplace Social Media Policies Must Account for Generational Issues February 7, 2013
Blog: Work in Progress Kiss and Tell February 6, 2013
Latest News

Desperate Housewife Sentenced in Huge California Workers' Comp Scam

Investigators found the would-be reality TV star and her husband submitted 42 fraudulent claims and underreported tens of millions of dollars in payroll to avoid paying workers' compensation premiums.

  • By Business Insurance Staff Reports
  • Published: December 6, 2011
  • Updated: December 9, 2011
  • Comments (0)
Related Topics:

A woman seeking to appear on the Bravo TV series "The Real Housewives of Orange County" instead will spend 10 years on probation for one of the largest workers' compensation scams in California history.

Devon Lynn Kile, 46, has already spent two years in jail while her case was pending, according to the Orange County District Attorney's Office. She recently was sentenced for joining her husband, Michael Vincent Petronella, 52, in committing $30 million in workers comp insurance premium fraud.

The couple gained notoriety in 2010 after fraud investigators raided several properties they owned and found luxury cars including a Bentley, two Ferraris, $500,000 in jewelry and $51,000 in cash. They also found an application for Kile to appear on the television show.

In April, Kile pleaded guilty to 36 felony counts, including misrepresenting facts to the State Compensation Insurance Fund and tax evasion charges. She was sentenced to 10 years probation last week.

Petronella, also known as Michael Constantine, last year was sentenced to 10 years in prison.

The couple co-owned three roofing contractor businesses.Their arrests came after a two-year investigation that began after an employee fell from a roof in 2006 and submitted a payroll stub to SCIF. But SCIF did not insure the company listed on the pay stub and notified authorities.

Investigators found the couple submitted 42 fraudulent claims and underreported tens of millions of dollars in payroll to avoid paying workers' compensation premiums.

Meanwhile, they charged more than $2.1 million on one credit card and spent thousands of dollars "on jewelry, shoes, clothes and other personal items" at high-end designer stores, prosecutors said.

Kile was also ordered to pay at least $2.8 million in restitution.

Business Insurance is a sister publication of Workforce Management.

Stay informed and connected. Get human resources news and HR features via Workforce Management's Twitter feed or RSS feeds for mobile devices and news readers.

Leave A Comment

Guidelines: Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. We will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. You are fully responsible for the content you post.

Stay Connected

Join our community for unlimited access to the latest tips, news and information in the HR world.

Follow Workforce on Twitter
HR Jobs
View All Job Listings

Search