Orange County Housewife’s Insurance Fraud Leads to Jail Time

Everybody who likes insurance costs going up, raise their hand. Nobody? We thought so. And it’s people like Devon Lynn Kile and her husband Michael Vincent Petronella that cause our insurance rates to go up. How? By defrauding the insurance company. How much? Oh, that’s a doozie: It’s a state record of a whopping $30,000,000.

Those zeros are correct: $30 MILLION. Perhaps this was part of her ideal lifestyle, as evidenced by the application for the Real Housewives of Orange County, seized during the raid on her Laguna Hills home. Well, guess what, honey. It’s not your “real” lifestyle if you’ve been swindling the insurance company out of tens of millions of dollars.

What else was seized during the raid? Only $500,000 in jewelry (a 10-carat diamond ring) and watches (from Rolex and Chopard), handbags and shoes from luxury brands Gucci, Chanel,  Burberry and others, two Ferraris, a Bentley and a Range Rover. (From her booking photo, it looks as if Ms. Kile also invested in some elective surgery.)

You don't need to steal money from the insurance company; just get good rates from BMR Insurance!

It feeds the prosecution’s argument that Petronella and Kile used their companies as personal piggy banks to support their extravagant lifestyle. One of their clients? The Ocean Institute in Dana Point. Don’t the whales and other marine life have enough to deal with?

Petronella has already been sentenced to 10 years in state prison last year for 33 felony counts of insurance fraud. Kile has served two years in prison while her case was pending, and now will have 10 years of probation. If she violates that probation, she will be sentenced to 10 years in state prison. Oh, and there’s the restitution of $1.3M to the Employment Development Department and $1.5M to the Franchise Tax Board.

Her attorney Ken Chinn said: “She’s penniless after all of this. 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.”

Our heart bleeds for her. She was actually the one who handled the finances while Petronella handled the roofing jobs. They reported only $3M in payroll to the fund, while having an actual payroll of $32M, and fraudulently submitted 42 claims for uninsured injured workers. Nice.

It’s too bad that she didn’t get on RHOC. The raid on her house would have made great reality television…or is that a contradiction in terms?

Don’t get caught out with high insurance rates for workman’s comp or liability. Call BMR Insurance Agency today for a free review of your commercial insurance policies—we’re confident we can save you money! (714) 838-1911

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