From Prada to Prison: the Story of a Wannabe ‘Real Housewife’

A woman who wanted to become part of the “Real Housewives of Orange County” cast is going to get a different dose of reality as she was recently sentenced to 10 years of probation on November 30^th. She was convicted for committing a state record of over $30 million in workers’ compensation insurance fraud.

According to the OC Register and the Orange County District Attorney’s Office, Devon Lynn Kile, 46, pleaded guilty in April to over 70 felony counts, including misrepresenting facts to the State Compensation Insurance Fund and failing to file a return with the intent to evade taxes.

Kile has already served two years in county jail while her case was pending, and Superior Court Judge Erick Larsh ordered that if she does not successfully complete her probation, she will be sentenced to another 10 years in prison.

Prosecutors state that she was also 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 amount of restitution for the state insurance fund is still to be determined, pending a decision by an appeals court on how much her husband, who is a co-defendant, owes.

Michael Vincent Petronella, 52, was sentenced back in 2010 to 10 years in state prison after being found guilty earlier that year of 33 felony counts of insurance fraud.

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

Deputy District Attorney Debbie Jackson said the court took several factors into consideration in sentencing Kile: the time she had already served, her taking full responsibility, and her husband being the one with the contractor’s license.

“I thought it was a fair sentence given her involvement,” Kile’s attorney Ken Chinn said.

Chinn added, “She’s penniless after all of this.” “She’ll be dependant on the kindness of all her friends while she’s trying to get back on her feet and trying to make the restitution.”

Prosecutors said previously that 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 that were seized by investigators from the couple’s home is $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 on their Laguna Hills home? An application for Kile to appear on the “Real Housewives of Orange County” television show.

Petronella and Kile, who owned three businesses in Costa Mesa and Cathedral City, including Petronella Roofing, were accused of underreporting the number of employees and discouraging workers from filing claims.

The district attorney’s office noted that, starting in 2000, the couple obtained workers’ compensation insurance for their companies through the state insurance fund.

Then, between 2000 and 2008, Petronella fraudulently submitted 42 claims for uninsured injured workers and underreported $29 million in payroll to the fund so they wouldn’t have to pay the premiums.

Prosecutors stated that Petronella and Kile reported $3 million in payroll, while having an actual payroll of $32 million.

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