Court tosses 33 of 37 verdicts against attorney convicted in comp kickback scheme

A California appeals court on Tuesday ruled that an attorney who participated in a kickback scheme was improperly charged with a general crime that carried a harsher penalty rather than a more specific crime with a lesser penalty, reversing convictions on 33 of 37 counts.

As a result of tossing all but four of the convictions, the 4th District Court of Appeal said it also had to reverse a white-collar sentencing enhancement and vacate a restitution award.

An Orange County, California, jury in August 2022 convicted Jon Woods on 37 felony counts of insurance fraud for a scheme that generally involved referring copy and subpoena work in exchange for kickbacks or client referrals. He was sentenced to four years in state prison in October 2022 and ordered to pay more than $700,000 in restitution to 17 insurers.

Mr. Woods argued that the so-called “Williamson rule” prohibited his conviction on the majority of charges. The rule prohibits prosecutors from charging a person with a more general crime that carries a harsher punishment when the legislature has defined a specific crime with a lesser punishment.

Counts 5 through 37 against Mr. Woods were charged as felony violations for concealing or withholding information from an insurance company that affects entitlement to an insurance benefit. But his conduct is also covered by another code, which made it a misdemeanor to refer work to third-party services in exchange for compensation, the court said.

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