Calif. Pair Sentenced in Insurance Premium Fraud Case

November 12, 2002

Two Sacramento area women pled guilty to charges of insurance fraud as a result of an investigation by the California Department of Insurance (CDI) Criminal Investigations Branch’s Fraud Division.

Janet Mae Gudgel, 62, and Kimberly Kay Volk, 44, surrendered to authorities on June 26, 2002, and were booked into the Sacramento County Jail on three felony counts each of insurance fraud. Both women 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. The Sacramento County District Attorney’s Office prosecuted this case.

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 purportedly 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 admitted to investigators that Gudgel Roofing had underreported payroll to the three insurance carriers.

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