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Couple Blames Each Other For Scam; Both Found Guilty

Pair Devised Ruse To Collect Money For Honda, Officials Say

POSTED: 3:15 pm PDT October 13, 2007
UPDATED: 4:49 pm PDT October 13, 2007

A not-so-devoted married couple who torched their car for an insurance payout blamed the crime on each other in court but were both found guilty, the U.S. Attorney's office announced Saturday.

Brentwood residents Louis Gonzalez, 27, and Katherine Paiz, 22, had separate trials on charges they each had a part in torching their 2006 Honda Accord and billing their insurance company for a payoff, according to Scott Schools, the U.S. attorney for Northern California.

At trial, Gonzalez told the court his wife was responsible for the entire scam and that he played "no role whatsoever." Paiz, on the other hand, admitted in her trial she had a part in the scam, but said Gonzalez got her involved and was solely responsible for burning the car. She said she played no role in the arson, Schools said.

Eventually, they both admitted their part in the scam, and Gonzalez confessed he alone burned the car, according to the report.

The couple was apparently agitated when their dealership told them their Honda had $6,000 to $7,000 of engine damage. The couple reportedly ruined the car's engine because of over-revving and improper shifting.

A few weeks later, Paiz got a comprehensive policy from Progressive Insurance that covered both fire and theft. Nine days after joining Progressive, Paiz parked the Honda in an area of her employer's parking lot unseen by security cameras. Gonzalez then picked up the car and drove it to a remote area near Byron Airport in Contra Costa County, where he doused it in gas and lit it on fire, officials said.

The couple called Progressive Insurance soon after and reported their car stolen and burned. They wanted full price for the loss, the U.S. Attorney's Office said.

The couple incriminated themselves, though, when they turned their keys over to the insurance company. Progressive representatives knew 2006 Honda Accords cannot be hot-wired, that they need a key to start.

Authorities were contacted and the couple were detained and charged with conspiracy to commit fraud, two counts of fraud involving interstate telephone calls (wire fraud) and using fire to commit wire fraud.

The penalty for using fire to commit wire fraud is a mandatory prison term of 10 years. The maximum statutory penalty for each count of wire fraud is 20 years and a fine of $250,000.

The couple will be sentenced Jan. 8.


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