SANTA ANA : Woman Ordered to Prison in Insurance Fraud

A Westminster law office employee who says she was just following orders was sentenced Friday to 16 months in state prison, closing another chapter in what authorities have described as one of the state’s largest auto insurance fraud schemes.

Phuong Thi Bich (Nancy) Vo, 32, of Garden Grove, sobbed uncontrollably and nearly collapsed upon hearing her sentence, her attorney said. She was told to surrender to custody next Friday.

Vo was convicted in August of conspiracy, insurance fraud and attempted grand theft. Another office worker, Lam Hoang Luu, and the attorney who employed them, James Michael MacPhee, also were convicted in August but have not yet been sentenced.

The trio are among more than 35 people arrested in January, 1993, in connection with what authorities described as four loosely allied fraud rings in Orange and San Diego counties that bilked insurance companies with phony auto accident claims.

The scam involved “victims” seeking payments for injuries they never suffered in accidents that never happened. Orange County investigators went undercover and claimed to be accident victims but made it clear to the trio that their claims were fraudulent, Chinn said.

Vo and Lam had a partnership and received a percentage from the insurance claims proceeds, as did MacPhee, according to court testimony. Luu also denied any wrongdoing and MacPhee contended he was betrayed by his employees and was unaware of any illegal activities.

“I think for other law offices that are out there that are engaged in personal injury practices where fraudulent claims are being brought to these offices, they need to be very careful that they are only handling legitimate cases and they are not creating an environment where people are bringing fraudulent claims to them,” said Deputy Dist. Atty. Kenneth Chinn of the sentencing, “because they will be prosecuted if they are caught.”

Vo faced a possible sentence of up to five years in state prison, Chinn said. Luu also faces a possible five-year sentence and MacPhee faces a sentence of up to six years in state prison, he said.

“I thought 16 months was appropriate given her level of involvement in this case,” Chinn said of Vo. “Luu seemed to be more deeply involved and she would look to him for instructions on what to do.”

Vo’s defense attorney said Friday he was disappointed with the sentence and had asked the court that Vo be placed on probation with an electronic bracelet monitor and sentenced to community service.

“She acknowledges that what she did was wrong and so be it. What we were disappointed in is that she got state prison,” said attorney William Monroe. “I would say she is probably less sophisticated than the other people in the office. I think the testimony even at the time of trial was that she was not a decision maker. She simply did what she was told.”