Orange County Attorney Douglas J. Pettibone obtains a $2,000,000 judgment, and busts a former insurance broker who then gets sentenced to10 years in prison by Judge Thomas Goethals for grand theft, forgery and insurance fraud for taking in millions in workers compensation insurance premiums and then never obtaining the insurance.
Orange County, Cailfornia (PRWEB) July 6, 2010 -- Orange County Attorney Douglas J. Pettibone obtains a $2,000,000 judgment, and busts a former insurance broker who then gets sentenced to10 years in prison by Judge Thomas Goethals for grand theft, forgery and insurance fraud for taking in millions in workers compensation insurance premiums and then never obtaining the insurance.
Pettibone's clients Transworld Solutions pursued a civil portion of the case against Mitchell Basil Zogob in the Los Angeles Superior Court (Transworld Solutions vs.Champion Insurance Zogob, Los Angeles Superior Court Civil Case No: VCO44652) which involved 9 counts of fraud against Zogob, and his company MS Management, including charges of fraudulent misrepresentation, deceptive trade practice and breach of contract.
Deputy District Attorney Debbie Jackson, who handled the criminal side of the case (People vs. Zogob, Orange County Criminal Case No. 06CF3901), said, in the Orange County Register, Zogob was paid $4.6 million in workers' comp insurance premiums. He later provided the companies with forged certificates of insurance but he never obtained the insurance, Jackson said. This left Pettibone's clients and others exposed to workers compensation claims. "These crimes have had far-reaching effects," Jackson said, "He gets 10 years in prison, but his victims suffer much longer because they continue to pay. It doesn't end in 10 years for them."
After the judge's decision Pettibone, then pursued Zogob's related but defunct companies and the shareholder's, under a theory of alter ego liability. Under the alter ego theory, Pettibone's clients were seeking to pierce the veil and prove that the shareholders and officers did not operate the company as if it were a separate legal entity.
These remaining shareholders agreed to mediation at Judicate West in Orange County, California. After three days of mediation a confidential settlement was reached which resolved all remaining issues in the civil case.
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[Via Legal / Law]