Couple accused of state's largest worker's comp fraud case

Orange County prosecutors say a Laguna Hills couple was behind California’s largest worker’s comp fraud case. KPCC’s Susan Valot says the authorities arrested the couple at their home yesterday.

Orange County prosecutors say a Laguna Hills couple was behind California’s largest worker’s comp fraud case. KPCC’s Susan Valot says the authorities arrested the couple at their home yesterday.

Susan Valot: Prosecutors say Michael Petronella and his wife Devon Kile used their roofing and general contracting businesses to commit millions of dollars in insurance fraud. The companies worked on lots of local projects – and had contracts with the Ocean Institute in Dana Point and the Pacific Amphitheater in Costa Mesa.

The district attorney says Petronella and his wife reported only a fraction of their payroll so they could get cheaper worker’s compensation rates from the state. The DA says the couple also submitted dozens of fraudulent injured worker claims.

In all, prosecutors say the couple committed more than $38 million dollars in worker’s comp fraud. The district attorney says the couple spent the money on a lavish lifestyle, including houses, jewelry, and Ferraris. They face more than 100 felony counts &ndsah; and they could face more than 100 years in prison if convicted.