Devon Lynn Kile, Real Housewives Wannabe, Won't Be Trading Pradas for Prison Garb
Kile, who spent two years in county jail garb while her case was pending, must successfully complete 10 years of probation and pay around $3 million in restitution to avoid the 10-year prison sentence her husband received.
As part of Kile's sentence, restitution payments will total $1.3 million to EDD, $1.5 million to the Franchise Tax Board (FTB) and a yet-to-be determined amount to SCIF.
|Michael Vincent Petronella, a.k.a. Michael Constantine|
In March 2006, one of their employees was injured after falling from a roof. A payroll stub was submitted to the SCIF listing his employer as Western Cleanoff, Inc., which the state Legislature-created, quasi-governmental non-profit insurance company did not insure. The SCIF reported the suspected fraudulent claim to the Orange County District Attorney's office (OCDA) and the state Department of Insurance (DOI).
The Orange County Premium Fraud Task Force, a collaboration of investigators from OCDA, DOI, EDD, FTB and the Contractors State License Board investigated the couple for two years and discovered that between 2000 and 2008, they fraudulently submitted 42 claims for uninsured injured workers and underreported $29 million in payroll to SCIF in order to avoid paying Workers' Compensation Insurance premiums. The scheme resulted in SCIF incurring more than $253,000 in uncovered injured worker claims and insurance premium losses in the millions. Petronella and Kile reported $3 million in payroll to SCIF, while having an actual payroll of $32 million, ten times more than reported.
When the couple was arrested at their Laguna Hills home on April 29, 2009, they owned five properties in California and Texas and multiple luxury vehicles including a Bentley, two Ferraris, and a Range Rover. Between 2005 and 2007, they spent more than $2.1 million on their American Express credit card for personal items. They spent thousands of dollars on jewelry, shoes, clothes, and other personal items at stores including Balenciaga, Bloomingdale's, Chanel, Christian Louboutin, Gucci, Kitson, Neiman-Marcus, Nordstrom, Yves Saint Laurent and others.
A search of two residences, two businesses, a storage unit and a Certified Public Accountant's office turned up more than $500,000 in jewelry, $51,000 cash, and an application from Kile to be featured on Bravo's Real Housewives of Orange County.
A court-appointed Receiver later determined which properties of the couple should be sold or put up for collateral to cover their fines.
- Michael Vincent Petronella, Laguna Hills Roofer Who Lived Like a King, to Do a Dime for Massive Workers' Comp Insurance Fraud