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Wife of Orange Co. contractor sentenced in work comp fraud case

In a previous workers' compensation defense post, we reported on how a Laguna Hills couple was facing a multitude of criminal charges for orchestrating what the Orange County District Attorney's Office called one of the largest work comp fraud schemes in California history.

Specifically, prosecutors alleged that Michael Vincent P., 52, along with his wife Devon Lynn K., 46, owned three roofing/general contracting businesses, and engaged in a complex pattern of fraudulent practices regarding work comp premiums and work comp claims.

Specifically, prosecutors claimed that the couple:

  • Submitted 42 fraudulent workers' compensation claims, resulting in substantial losses for the state of California
  • Reported only $3 million in payroll to the State Compensation Insurance Fund while the actual payroll was closer to $32 million, an action that resulted in million dollar losses for the state of California

Michael Vincent P. and Devon Lynn K. were eventually arrested in April 2009 following a lengthy investigation. After executing a search warrant, law enforcement officials discovered a multitude of luxury items, including over $500,000 worth of jewelry, several expensive automobiles, and high-priced handbags and shoes.

They also found an application for Devon Lynn K. to appear on the Bravo Network's "Real Housewives of Orange Country" reality TV program.

Michael Vincent P. was convicted of 33 felony counts of insurance fraud back in 2010 and sentenced to ten years in prison. In addition to the incarceration, he was ordered to pay multiple fines, including $500,000 in restitution to the state insurance fund.

In recent developments, Devon Lynn K. -- who pleaded guilty to over 70 felony counts in April -- was sentenced to ten years probation last Wednesday.

Here, the court considered multiple factors in handing down Devon Lynn K.'s sentence, including her two years already served in county jail while her case was pending, her aforementioned guilty plea, and the fact that her husband was equally responsible for the crimes committed.

In addition to the probation, Devon Lynn K. was ordered to pay $1.5 million in restitution to the Franchise Tax Board, $1.3 million in restitution to the Employment Development Department and an as yet-to-be determined amount to the state insurance fund.

"I thought it was a fair sentence given her involvement," said Devon Lynn K.'s attorney. "She'll be dependent on the kindness of all her friends while she's trying to get back on her feet and trying to make the restitution."

Stay tuned for further developments from our workers' compensation defense blog ...

This post was provided for informational purposes only and is not to be construed as legal advice.

Source

The Orange County Register, "Woman who wanted to be on 'Real Housewives' sentenced" November 30, 2011

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