Photos of property liquidated to help fund restitution. Photo: District Attorney’s Office
SAN DIEGO–The District Attorney’s office will distribute more than $832,000 in additional restitution funds to hundreds of California seniors scammed by Michael and Melissa Woodward, convicted defendants who sold phony health insurance plans throughout California and other states.
The disbursement is the second round of restitution checks sent out by the District Attorney’s Office in the case, bringing the total amount of restitution payments made to over $1.5 million. The restitution funds were acquired through the seizure and sale of property owned by the defendants at the time of their arrest.
“Many of the elderly victims in this case lost tens of thousands of dollars after being targeted by heartless scam artists,” said District Attorney Bonnie Dumanis. “The team in the DA’s Office who worked this case has done a terrific job not only securing justice, but also getting the money back for these vulnerable seniors.”
For nearly a decade, Michael Woodward systematically targeted and defrauded seniors throughout the United States by selling worthless “in-home services agreements.” Woodward peddled these plans under different company names, including Secure Tomorrows, Home Health America, Secure Care, Americare and US Home Health. Since 2006, Woodward swindled over 230 San Diego seniors out of more than 1.9 million dollars in premiums. His take statewide was over three million dollars taken from 387 victims. His wife, Melissa, aided in his crimes.
On June 12, 2013, Michael Woodward pleaded guilty to residential burglary, theft from an elder, theft greater than $500,000, acting as an insurance company without authorization, and failure to file a state tax return. Melissa Woodward pleaded guilty to failure to file a state tax return. At the sentencing hearing on August 8, 2013, Michael Woodward was sentenced to prison for 11 years. Melissa was placed on probation. Both were ordered to pay restitution of $3 million to victims throughout California.
At the time of arrest, the prosecution team immediately froze various items of property belonging to defendants. These included a house and condominium in Las Vegas, sports memorabilia, jewelry, artwork, and bank accounts. At sentencing, the District Attorney’s Office formally seized these items for liquidation and distribution to victims as restitution.
On September 26, 2013, the District Attorney’s Office mailed out more than $595,000 in restitution to 270 victims statewide. These funds were the contents of bank accounts seized from defendants. Another $169,000 of bank funds that was owed to the estates of deceased victims was held back from distribution until executors or trustees could be located.
Over the past several months, the court-appointed receiver has arranged for the various items of personal property to be put up for auction, and for the real estate to be put on the market. When potential buyers were located, approval of the sale was acquired from the sentencing judge. Upon request, members of the Nevada Attorney General’s Office initiated proceedings in Nevada state court to have the California orders approved in Nevada. This saved considerable restitution funds that would have otherwise been spent on legal fees in Nevada. Those Nevada proceedings were successfully completed a short time ago and the sale was finalized.
While property was being liquidated, District Attorney and Department of Insurance employees were tasked with tracking down victims whose checks were returned as “undeliverable,” as well as identifying executors or trustees of estates of victims who had died prior to receiving restitution. That process has now been completed, clearing the way for the disbursement of all remaining funds in the possession of the District Attorney’s Office. In total, the exact figure for restitution disbursed in this case is $1,598,027.
This 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. Deputy District Attorney Michael Zachry prosecuted the case. Franchise Tax Board special agents also assisted in the investigation.
The San Diego District Attorney’s office and the California Department of Insurance credit the successful outcome of the case to their cooperative relationship with the Nevada Attorney Generals’ office. The Nevada AG’s office played a vital role in the preparation and execution of search and arrest warrants in April 2013, as well as providing legal representation to have the California orders approved by the Nevada court.
Information on how to 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 and at the California Department of Insurance website at www.insurance.ca.gov/0150-seniors. Consumers are encouraged to call the Department of Insurance Consumer Hotline at 1 (800) 927-HELP (3457) regarding questionable insurance products.
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