Apr 26, 2013 - crime is shocking,â said Insurance Commissioner Dave Jones. âThe good work done by. Department of Ins
OFFICE OF JESUS RODRIGUEZ ASSISTANT DISTRICT ATTORNEY
COUNTY OF SAN DIEGO
San Diego 330 West Broadway San Diego, CA 92101 (619) 531-4040
BONNIE M. DUMANIS
http://www.SanDiegoDa.com
THE DISTRICT ATTORNEY DISTRICT ATTORNEY
April 26, 2013 For Immediate Release
Contact: Steve Walker, (619) 531-3890 Watch Video Tanya Sierra, (619) 531-3315 En Español Jesse Navarro, (619) 531-3053
DA Charges Couple Who Scammed 100s of Elderly Out of Nearly $2 Million Senior Citizens Bought Worthless ‘In-Home Service Agreements’ San Diego County District Attorney Bonnie M. Dumanis announced today that a fake insurance agent and his wife have been charged with 11 felony counts including burglary, grand theft, theft from an elder, tax evasion and other charges for their roles in bilking $1.9 million from hundreds of San Diego County senior citizens in a scam in which the couple sold phony ‘in-home service agreements.’ Michael Woodward, 50, and his wife, Melissa Woodward, 47, were arrested at their home in Las Vegas, Nevada on April 10 and extradited to San Diego to face charges. Both were arraigned today at 1:30 p.m. in Dept. 11 of San Diego Superior Court downtown. They face up to 16 years in local prison if convicted of the charges. “The defendants in this case were ruthless and heartless in the way they targeted the elderly and sold them fake insurance policies,” DA Dumanis said. “I’m proud of the work our Insurance Fraud Unit is to bring justice to these victims and other senior citizens who became victims of elder abuse in the community. We’re also encouraging anyone who bought an in-home service agreement from these defendants to come forward.” For nearly a decade, Michael and Melissa Woodward swindled 238 San Diego seniors out of more than $1.9 million in premiums. They would target elderly senior citizens at their homes telling them that for a prepaid annual fee, the victim could get an unlimited amount of nonmedical services such as cooking, cleaning, bathing, toileting, dressing, laundry and shopping. To receive services, he told the victims, they should call him and provide a doctor’s note. The case was investigated by the California Department of Insurance (CDI) and then referred to the DA’s Insurance Fraud Division for further investigation and prosecution. Franchise Tax Board special agents also assisted in the investigation. Because Woodward and his wife lived in Las Vegas, CDI Investigators contacted the Nevada Attorney General’s Office for assistance. Investigators from the Insurance Fraud Unit of the Nevada Attorney General’s Office provided tremendous help, acquiring a search warrant for Woodward’s residence, making entry and then allowing CDI investigators to search it. As the CDI searched the home, investigators from the 1
Nevada Attorney General’s Office took the Woodwards into custody and transported them to jail. “Both defendants ran an unscrupulous plan to bilk innocent seniors,” said Nevada Attorney General Catherine Cortez Masto. “I encourage Nevadans who may be victims of this crime to report it to our office. The successful arrest and charging of these defendants is the result of cooperation among states. I am thankful we were able to collaborate across state lines in order to prevent this couple from continuing their insurance scheme.” In reality, Woodward’s plan was a sham. He and his wife were the only employees of the company and were not able to provide the in-home services he offered. The most he did includes paying a third party to provide the requested services, or reimbursing seniors for the expense of acquiring services on their own. “The extent to which the Woodwards went to rip-off vulnerable seniors and attempt to hide their crime is shocking,” said Insurance Commissioner Dave Jones. “The good work done by Department of Insurance investigators and the District Attorney's Office made the difference in uncovering this scam and putting a stop to their criminal enterprise. I’m pleased our investigative partnership with the District Attorney is making a difference.” Inexpensive claims, such as requests for housecleaning, were often paid, but when victims made claims that were more expensive, Woodward would not return phone calls and would reject the claim. He also routinely returned to victims’ homes to collect additional premiums, well beyond the original cost he quoted for the plan. The Woodward’s fraudulent activities in San Diego follow similar actions in other states including Washington, Oregon, Minnesota and Texas. In all, he bilked victims out nearly $6 million across the nation. When dealing with senior citizens, he often used false names such as Mike Woods or Mike Smith, making it difficult to research his past. In keeping senior citizens safe, the key to prevention is knowledge and awareness. In addition to the Insurance Fraud Division, which is handling this case, The District Attorney’s Office has a top-notch Elder Abuse Prosecution Unit. They handle 210 felony cases per year with a lead prosecutor, two victim advocates and a full-time investigator. Information on how protect yourself and your loved ones from becoming victims of elder abuse can be found on the District Attorney’s public website at www.SafeSeniorsSanDiego.com Victims in Nevada with information regarding Michael and Melissa Woodward, or their business are urged to contact the Nevada Attorney General’s Office Insurance Fraud Unit at 1-800-2668688 and submit a written complaint. A form can be found on the AG’s website at http://ag.nv.gov/ Insurance_Fraud/. ###
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