Kew couple set up law firm to scam insurer out of $17.4m, court told
Soon after Josie Alvarez began work as a claims manager for an insurance underwriter she and her husband set up a legal firm which, a court has been told, billed the insurer more than $17.4 million for legal services that were never provided.
Ms Gonzalez and her husband Alvaro are each standing trial accused of 14 counts of obtaining a financial advantage by deception, between March 2011 and April 2013.
On Wednesday the County Court was told that the couple set up Jaag Lawyers shortly after Josie Gonzalez started working for underwriting agency Dual Australia as a claims manager in November 2010.
Prosecutor Andrew Grant told the jury either Josie or Alvaro Gonzalez would write up invoices for legal services Jaag Lawyers purportedly provided Dual Australia, before they were sent to her for approval.
"One of the reasons it [Jaag] was set up, if not the sole reason, was to be involved in this alleged fraud," Mr Grant said.
"At no time was Jaag Lawyers employed directly or indirectly to provide work for Dual.
"The invoices were false invoices."
Some of this money was also allegedly used to buy a $4.4 million house in the exclusive suburb of Kew.
All up, Mr Grant said Dual paid more than $17.4 million for legal services never provided, with the alleged fraud only uncovered after Josie Gonzalez went on maternity leave in May 2013.
In a subsequent civil case, Mr Grant said the couple agreed to repay Dual more than $15.8 million.
"It's a pretty powerful piece of evidence," the barrister said of the civil settlement he read to the jury.
The trial continues.
AAP