Estates man gets 5 years for Hurricane Wilma insurance scam

Naples Daily News

Friday, January 30, 2009

NAPLES — A 40-year-old Golden Gate Estates man who accepted kickbacks for referring Hurricane Wilma home-repair work to a Naples contractor was sent to prison for five years Friday after pleading guilty to a roughly $76,000 insurance fraud scheme.

Edward Joseph O’Neil, once an insurance adjuster for Cincinnati Insurance Co, was adjudicated guilty of scheme to defraud, a first-degree felony, and Collier Circuit Judge Fred Hardt, sentenced him to 10 years of probation after his release. He also ordered him to pay $632.82 monthly over that period to pay off the $75,938.50 in restitution to his former employer.

O’Neil, who wore a suit, said little during his sentencing, except to say he understood he was waiving away his rights to a trial and an appeal. Hardt ordered him to have no contact with contractor Edward Byrnes, who operates K & B Builders in East Naples, and his wife, Diane. Byrnes cooperated with the State Attorney’s Office and his case is pending before another judge. O’Neil had faced up to 30 years in a state prison, but was sentenced as part of a plea agreement negotiated by Assistant State Attorney Jim Molenaar and defense attorney Burt Stutchin.

The prosecutor told the judge on Wednesday that further investigation showed the amount embezzled by O’Neil was more than $100,000. “I never saw any evidence that would warrant that,” Stutchin said as he left the courthouse after sentencing. “The penalty was severe enough.” O’Neil faced trial next week and had accepted a plea deal Wednesday, but Hardt rejected the agreement to two years of house arrest followed by probation and restitution.

Stutchin tried to withdraw as attorney after Hardt denied a ruling asking that the judge not preside over the case. The motion said Hardt would be biased because he’d worked as counsel for Cincinnati Insurance and understood the workings of the insurance industry. Hardt angrily denied Stutchin’s interpretation of what he’d said, adding, “I know what I said.” Stutchin withdrew his motion to withdraw on Wednesday, then reinstated it after Hardt rejected the plea deal. He was to argue the motion Friday, but they reached the plea agreement.

After Hardt was told of the sentence, Stutchin asked for a 90-day furlough so O’Neil could tie up family affairs. “No. Not on a five-year sentence,” Hardt tersely replied. O’Neil then pleaded with him for time, at least 30 days before he turned himself in for sentencing. “I have a father in law, who has been like a father to me, who has Guillain-Barré disease,” O’Neil said. “My mom lives with me as well and she’s indigent.” Hardt again refused and said he could plead later or go to trial.

Looking like he was about to cry, O’Neil walked outside the courtroom with the attorneys and later returned, pleaded and was sentenced. His wife, Laurel, who had been at the hearing Wednesday, was not there and learned over the phone her husband would be leaving her and their children for five years. He was given credit for the one day he served in county jail before he posted $15,000 bond five hours after his arrest on March 6. 2008.