Workers' Comp Fraud Blotter (12/1/2011) – Real Housewives of Orange County Wannabe Pleads Guilty To Insurance Fraud Scam

Workers' Comp Fraud Blotter (12/1/2011) – Real Housewives of Orange County Wannabe Pleads Guilty To Insurance Fraud Scam

Each week we'll be surveying what the media, state agencies, insurance companies, and others report in terms of workers' comp fraud. Just like a police blotter, our workers' comp fraud blotter lists recent arrests, charges, convictions and investigations.


Workers' Comp Fraud Blotter - December 1, 2011

Real Housewives of Orange County Wannabe Pleads Guilty For Insurance Fraud Scam With Roofing Contractor Husband (CA) - Devon Lynn Kile, who hoped to appear on the "Real Housewives of Orange County" television show and co-owned three roofing contractor businesses with her husband, has been sentenced to probation and ordered to make over $2 million in restitution for committing $30 million in insurance fraud in one of the largest known workers' compensation insurance fraud cases in California's history. Beginning in 2000, Kile and her husband, Michael Vincent Petronella, obtained Workers' Compensation Insurance for their three roofing companies. Between 2000 and 2008, the companies fraudulently submitted 42 claims for uninsured injured workers and underreported $29 million in payroll in order to avoid paying Workers' Compensation Insurance premiums.   Read more

Delivery Driver Double-Dipping As Loss Prevention Officer While On Workers' Comp (TX) - Robert Rosette has been sentenced to two years' deferred adjudication and 60 hours of community service as a result of his conviction on workers' compensation fraud-related charges. Rosette reported a job-related injury while working as a delivery driver and warehouseman for Affordable Rent-to-Own, LLC. He claimed that he was unable to work as a result of the injury and began receiving income benefits.  Evidence was then uncovered that Rosette was working as a loss prevention officer for another employer while receiving the income benefits.   Read more

Claimant Falsely Stated That She Could Not Work (NY) - Olga Shelestovsky has been arrested for offering a false instrument and committing a fraudulent practice under the workers compensation law. She claimed that she was unable to work because of an injury and was collecting workers' compensation benefits while she was secretly working at a restaurant.   Read more

Former Department Of Parks And Recreation Employee Charged With Workers' Compensation Fraud (NY) - Cosmo A. Zingaropoli, a former Staten Island Department of Parks and Recreation employee, has been arrested on charges of falsely stating that he did not work, when, in fact he was paid for home improvement and repair work at numerous private residences while he collected more than $70,000 of workers' compensation. Zingaropoli claimed to have suffered injuries to his head, neck, back, left knee, and left shoulder, and suffered from post-concussive syndrome while on his parks job as a maintenance worker.   Read more

Pretend Insurance Agent Pleads Guilty In Employee Benefit Scheme (FL) - Carl Dale Fuller has pled guilty to a charge of mail fraud in connection with a scheme to defraud National Employer Services (NES) by devising a scheme and artifice to defraud NES out of more than $2.7 million over a three year period. The indictment charged that Fuller, posing as David Walters, an insurance agent and the owner of Southeast Services, Inc., defrauded NES. NES is a Professional Employer Organization, providing services for businesses that out-source employee benefits, payroll, workers compensation and other human resource functions.   Read more

Injured Worker Caught Working for Brother's Company (OH) - Gary Metz has been sentenced to a suspended jail sentence and ordered to make restitution on one felony count of workers' compensation fraud. Metz was working full time as a cable technician for Comteam, Inc., owned by his brother, while receiving Living Maintenance and Non-Working Wage Loss benefits. Non-Working Wage Loss is payable to injured workers who are unable to find suitable employment, and Living Maintenance is paid to an injured worker while they are participating in a vocational rehabilitation plan.   Read more

For more information about LexisNexis products and solutions connect with us through our corporate site.