Living a lavish lifestyle, complete with beautiful jewels and luxury-brand handbags, shoes, and cars, Devon Lynn Kile, of Lauguna Hills, had big plans to appear on the TV show, “Real Housewives of Orange County.”

Instead, the 42-year-old wannabe star has appeared many times in an Orange County court room after committing a state record of more than $30 million in workers' compensation insurance fraud.

Two years ago she traded her Prada for prison blues, while her case was pending.

In April, she pleaded guilty to more than 70 felony counts, including misrepresenting facts to the State Compensation Insurance Fund and failing to file a return with the intent to evade tax.

On Dec. 1, she was sentenced to 10 years of probation. If she does not successfully complete her probation, she will be sentenced to 10 years in state prison, Superior Court Judge Erick Larsh ordered.

In addition, Kile was ordered to pay $1.3 million in restitution to the Employment Development Department and $1.5 million in restitution to the Franchise Tax Board. The restitution to the state insurance fund is still to be determined, pending a decision by an appeals court on how much her husband, co-defendant Michael Vincent Petronella, owes.

Petronella, 52, was sentenced in 2010 to 10 years in state prison after being found guilty earlier that year of 33 felony counts of insurance fraud and a sentencing enhancement.

He has been ordered to pay $500,000 in restitution to the state insurance fund. The district attorney, however, is appealing, seeking a higher amount to cover the millions of dollars in loss.

According to prosecutors, Petronella and Kile used their companies, which included clients such as the Ocean Institute, in Dana Point, and the Pacific Amphitheater, in Costa Mesa, as personal piggy banks to support their lavish lifestyle.

Among the luxury items seized at the couple's home: $500,000 in jewels, including Chopard and Rolex watches, and a 10-carat diamond ring valued at $70,000, Gucci, Chanel, Burberry, and other luxury-brand handbags and shoes, and two Ferraris, a Bentley, and a Range Rover.

Also seized during a raid was an application for Kile to appear on the “Real Housewives of Orange County.”

Prosecutors say Petronella and Kile, who owned three businesses in Costa Mesa and Cathedral City, including Petronella Roofing, underreported the number of employees and discouraged workers from filing claims.

Starting in 2000, the couple obtained workers' compensation insurance for their companies through the state insurance fund. From 2000 through 2008, Petronella fraudulently submitted 42 claims for uninsured injured workers and underreported $29 million in payroll to the fund to avoid paying premiums.

As business partners, Kile handled the finances while Petronella managed the roofing jobs.

Special Reports /

Fraudster Trades Prada for Prison Blues

Related Stories

Recommended For You