Dental Assistant Arrested on WC Charges

Judith Lee Marciel (AKA Judith Lee Delgado, Judith Lee Douglas, Judith Lee Latch, Judith Lee Clark), 47, of Windsor, Calif., was arrested Oct. 30, 2002, on charges of workers' compensation insurance fraud.

Marciel was employed by an orthodontist in Santa Rosa as a dental assistant. In July 2000, she reportedly made a workers' comp claim stating that she injured her back at work. In March 2002, she was awarded $6,200 as a result of her claim.

A California Department of Insurance (CDI) investigation revealed that Marciel's alleged claim was fraudulent. Marciel did not sustain an injury at work, but allegedly injured her back at home while bending over to tie her shoes.

Marciel's insurance carrier, Zenith Insurance Company, suffered a direct loss of $6,200. The total loss to Zenith, including medical payments, investigative and administrative costs were in excess of $29,000.

Sacramento Pair Sentenced for Underreporting Payroll

Two Sacramento area women pled guilty to three charges of insurance fraud as a result of an investigation by the CDI Criminal Investigations Branch's Fraud Division.

Janet Mae Gudgel, 62, and Kimberly Kay Volk, 44, surrendered to authorities on June 26 and were sentenced on Oct. 31, 2002. Gudgel was sentenced to 240 days in county jail, four years formal probation, and ordered to pay restitution of $682,222 to State Compensation Insurance Fund (SCIF), $45,288.80 to CalComp (of the Superior National Insurance Group), and $79,312 to CNA Insurance. Volk was sentenced to 90 days in county jail, four years formal probation and a fine of $200.

According to investigators, a former employee of Gudgel Roofing came forward to CDI and reported that Gudgel Roofing was allegedly underreporting payroll to their insurance company. The investigation revealed Gudgel Roofing had underreported payroll to three insurance carriers, SCIF, CalComp and CNA Insurance in Sacramento County from 1992 through the first quarter of 2001.

On Oct. 31, 2001, investigators interviewed Volk, the former office manager for Gudgel Roofing and she purportedly admitted to investigators that Gudgel Roofing had underreported payroll to the three insurance carriers.

Cars for Cocaine Scheme Results in Fraud Charges

Investigators with the CDI Criminal Investigations Branch's Fraud Division announced the arraignment of a Sausalito, Calif. man on insurance fraud charges.

Todd Demerio Randolph, 39, was arraigned by a Marin County Superior Court Judge on a four count criminal complaint brought by the Marin County District Attorney's Office. Randolph is charged with making fraudulent insurance claims and making false material statements in support of insurance claims, each a felony.

The charges in this case stem from an investigation initiated by the Special Investigation Unit of USAA Insurance Company, which was later referred to CDI.

Investigators allege that Randolph and his friend, Regitze Von Luttichau, also of Sausalito, made a total of five separate auto insurance claims to USAA. Von Luttichau and her vehicles were insured by USAA. The claims were for theft of vehicles or for damage to vehicles. Investigators allege that in at least three instances, Randolph purportedly rented his vehicles to associates in return for illegal drugs, specifically cocaine, then, at a later date, he allegedly falsely reported that the vehicles were stolen.

On June 15, 2002, Randolph allegedly reported that his 1998 Mitsubishi Montero was stolen to the California Highway Patrol (CHP) in Marin County and to USAA. On that same day his vehicle was located in Richmond, Calif. with an extensive amount of damage. USAA considered the vehicle a total loss and paid out $16,824.

On Nov. 30, 2000, Randolph supposedly reported that his vehicle was stolen to the Berkeley Police Department and later to USAA. On Dec. 6, 2000, Randolph's vehicle was recovered by the CHP after the vehicle and its three occupants were involved in a high-speed pursuit with CHP. The pursuit ended when the vehicle collided into several parked vehicles. Randolph and Von Luttichau filed a theft affidavit with USAA. They were eventually paid $15,894 for damage to their vehicle.

On Jan. 4, 2000, Randolph and Von Luttichau reported that their 1992 Mitsubishi Expo was stolen while parked in Berkeley to USAA and to the Berkeley Police Department. The vehicle was later recovered in a damaged condition. USAA paid out $1,637.

As a result of several allegedly false statements by Randolph, USAA paid a total of $34,355 in direct claims. USAA estimates that internal costs to investigate the false claims are in excess of $9,300.

Auto Fraud Scheme Leads to Plea Bargain from Calif. Man

Keith Aaron Hayes, 49, a resident of Hacienda Heights, Calif., pled no contest to one count of auto insurance fraud and one count of capping on Nov. 13, 2002. The Los Angeles County District Attorney's Office prosecuted the case, which was the result of a two-year investigation by the CDI Criminal Investigations Branch's Fraud Division.

Hayes, also known as Jamil Shabazz, was arrested and charged with four counts of insurance fraud on Feb. 14, 2002. The remaining counts of filing a false claim were dismissed. He was sentenced to three years in state prison and is to surrender on Jan. 9, 2003. If he complies and surrenders on that date, one count of filing a false claim will be dismissed. If he does not surrender, he may be sentenced up to 11 years in state prison on both charges.

The CDI Fraud Division investigation determined that Hayes reportedly participated with four individuals to file false insurance claims for an alleged traffic collision on Feb. 26, 1999. The driver, Lynnette Ammons and passengers Anthony Graham Jr., and Vita McNair, filed false insurance claims with Coast National Insurance Company. Opposing driver Devorea Wilson filed a false insurance claim with Reliant General Insurance Company for the alleged collision. Ammons, Graham Jr., McNair and Wilson were previously prosecuted and convicted for insurance fraud for their participation in the crimes.

The investigation determined that Ammons' vehicle had sustained damage from a collision on Aug. 17, 1998 and that same damage was reported in an insurance claim as being from the alleged Feb. 26, 1999 collision. The investigation also determined that Wilson's vehicle had sustained damage in a Feb. 1, 1999 collision and that same damage was reported in an insurance claim from the alleged Feb. 26, 1999 collision with Ammons.

Hayes was previously arrested by CDI's Fraud Division investigators and convicted of insurance fraud. In 1993, he was sentenced to four years in state prison for that conviction.