Convicted couple’s jewelry, watches up for grabs

Irvine, Calif.--Anyone interested in buying luxury jewelry and watches at discounted prices will have a big opportunity next week.

This diamond bracelet is one of more than 300 pieces of high-end jewelry, shoes, handbags and clothing Tranzon Asset Strategies is set to auction next week.Tranzon Asset Strategies, in association with Tiger Capital Group’s Remarketing Services division, is scheduled to hold an auction on Oct. 8 featuring more than 300 items once owned by a California couple convicted of premium insurance fraud.

There will be more than 50 pieces of jewelry, including a 10-carat diamond ring, from brands such as Harry Winston and Dior. High-end watches from brands such as Rolex, Cartier, Chopard, Panerai and Breitling also will be offered.

According to the Orange County District Attorney’s Office, Michael Petronella and his wife, Devon Kile, together were convicted of more than 100 felony counts of insurance fraud, tax charges and aggravated white collar crime in connection with a $38 million worker’s comp insurance scam.

Law enforcement officials started looking into Petronella, who owned a roofing and general contracting business, after a March 2006 accident involving an employee brought to light the fact that one of his companies wasn’t registered or insured by the State Compensation Insurance Fund.

After a lengthy investigation, officials obtained a search warrant and discovered that the couple had more than $50,000 in ill-gotten cash and $500,000 in jewelry, as well as expensive cars and property.

Petronella was found guilty in 2010 of 33 felony counts of insurance fraud and a sentencing enhancement for aggravated white collar crime over $500,000 was found true. He was sentenced to 10 years in state prison and ordered to pay more than $1 million in restitution and fines.

Kile, who was applying for a role on the Real Housewives of Orange County reality television series, pleaded guilty in 2011 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.

She was sentenced to 10 years of probation and ordered to pay nearly $3 million in restitution.

The auction for their assets is scheduled for Thursday, Oct. 8, at the Wyndham Hotel in Irvine, Calif. beginning at 4 p.m. PST. A preview of the pieces will be held that same day from 1 to 4 p.m. PST.

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