For the second time in two years, a judge has ordered Buckingham socialite XXXXXX to start serving her jail sentence for her conviction in a $13 million insurance fraud scheme.
But XXXXXX still isn’t expected to turn herself in for at least another year, depending on what an appeals court decides.
The 74-year-old Buckingham resident did get some good news Friday at her first court appearance since she was sentenced in 2019 to serve 11-½ to 23 months in Bucks County jail.
She no longer has to repay insurer AIG $10.42 million to pay back fire-related claims it paid the family for a 2013 fire at the estate that bears her name.
A Pennsylvania Superior Court last August agreed with XXXXXX’s claim that not all her insurance claims were fraudulent, and that the trial court overstepped its bounds when it ordered her to repay $7 million in legitimate claims. The trial court cited her fraud convictions as voiding the entire homeowner’s policy.
A jury found that she was paid $2.75 million for false claims.
Under an agreement submitted on Friday, the Pennsylvania Attorney General’s Office accepted the $722,978, the net proceeds from the 2019 sale of the 10-acre “Clairemont” estate, as full restitution.
The Stony Hill Road property served as the centerpiece of the Pennsylvania Attorney General’s 2015 fraud case against XXXXXX and members of her family. The New York City investment company that bought it at auction has fully restored the home, now called Camelot Court. It is up for sale with a $3.2 million asking price.
The remaining XXXXXX assets seized in 2015 — $490,000 in a bank account and the Buckingham home where XXXXXX now lives — will be returned to the family.
The restitution change was the only issue that sent the case back to the court on Friday. But that didn’t stop her defense attorney, Michael Diamondstein, from requesting the judge consider petitions to reduce the jail sentence for XXXXXX, who walked into court using a hot pink walker and wearing a black face mask, her blonde mane fashioned in a messy up-do.
Diamondstein argued the original jail sentence is illegal because the previous judge assigned the case failed to address if XXXXXX was eligible for re-entry, which would allow her to be released from jail early.
Diamondstein added that Berks County Senior Judge Stephen Lieberman, who is now overseeing the case, has authority to reconsider the sentence made by the previous judge, who retired last year.
Chester County Senior Judge Thomas Gavin oversaw XXXXXX’s trial and sentencing. He was assigned the case after Bucks County’s judges recused themselves, citing potential conflicts of interest with XXXXXX, a prominent Republican fundraiser.
But Senior Deputy Attorney General Linda Montag noted that in his 125 pages of sentencing notes, Gavin made it clear he considered house arrest, but opted for incarceration.
At the 2019 sentencing, Gavin emphasized that he did not want his sentence to make it appear that crime pays, and that XXXXXX should serve some jail time.
Montag added that even if XXXXXX was re-entry eligible, she’d still have to serve 8 ½ months in jail before she could be considered for parole.
“Our position is, she start to serve it,” she added.
Lieberman sided with prosecutors, telling Diamondstein he did not believe he had the authority to “substantially change” another judge’s sentence.
“I think Judge Gavin’s reasoning was well thought out,” Lieberman added.
He denied the petition seeking immediate parole and house confinement for XXXXXX. He ordered her to turn herself into the jail on Aug. 2, unless she files an appeal in which she will remain free on bail.
After the hearing, Diamondstein confirmed his client will be filing an appeal.
In 2019, XXXXXX served a 30-day jail sentence for a contempt of court finding related to witness intimidation in the fraud case.
At her sentencing for the fraud conviction, she complained the steel frame beds aggravated her herniated discs. She described the jail experience as “really, really rough” and “pure hell,” but added she wasn’t “looking for a pity party.”
After a three-week trial, a jury convicted XXXXXX of dealing in unlawful proceeds, two counts of insurance fraud, theft by deception, criminal attempt theft by deception and conspiracy theft by deception in connection with the 2013 fire.
Among the fraudulent claims XXXXXX was convicted of filing was for $10 million in allegedly stolen jewelry that she accused volunteer firefighters of stealing while battling the 2013 fire. AIG never paid that claim.
The criminal case gained international attention when the Pennsylvania Attorney General brought fraud charges against XXXXXX and other members of her family and two associates alleging they used illegally procured insurance money to fund a lavish lifestyle.
XXXXXX was the only defendant to go to trial. Three other family members made deals that included no jail time. Two family associates had charges against them dismissed. XXXXXX’s second husband, Thomas French, died by suicide in 2015, shortly after the indictments were handed down.
See what the local and national media are saying about Michael Diamondstein and his cases.
Baltimore Ravens running back Ray Rice will be allowed to enter a program to avoid prosecution in an alleged assault of his now-wife. Upon successful completion of the program — which will be a minimum of one year — the third-degree charge of aggravated assault causing serious bodily injury would be dismissed. The arrest would remain on his record, but with no conviction.We were concerned that Mr. Rice would be treated more harshly because of his celebrity status. We are thankful that he was not. We are thankful that he was given the same treatment as anyone else in a similar situation.
- Michael J. Diamondstein
John Gallagher, founder of Gallagher Law in Philadelphia, has been indicted in federal court alongside other executives associated with aerospace startup Theia Group Inc. The indictment alleges involvement in a scheme where Theia falsely claimed plans to launch over 100 satellites for global surveillance, raising more than $250 million through fraudulent means. Gallagher, who served on Theia's board and as an executive vice president, is specifically accused of aiding founder Erlend Olson in financial misconduct and tax evasion activities. Gallagher, who specializes in space and satellite technology law, denies wrongdoing and intends to vigorously defend against these charges.“He [Gallagher] is a patriot, and we intend to vigorously defend his good name.”
- Michael Diamondstein
DT had spent three years in jail and was facing lifetimes more for multiple counts of child rape in Pennsylvania and Maryland. But Michael Diamondstein’s thorough investigation and strategic cross-examination forced prosecutors to withdraw their case mid-jury trial.“Michael Diamondstein is the best lawyer on Earth. He saved my life.”
- DT
Mark Young had been serving a life sentence for what prosecutors say was his role as a coconspirator in a 1974 bar robbery that ended in the shooting death of a patron. The 67-year-old Young, who maintained his innocence for almost 50 years, is now slated to be released from prison after a negotiated guilty plea. The judge vacated Young’s previous conviction and sentence.“The district attorney recognized the inequities in the case and we are thankful for the compassion and justice they decided was appropriate.”
- Michael Diamondstein
Willie Stokes's release comes after the U.S. District Court for the Eastern District of Pennsylvania vacated his murder conviction, concluding that the state violated Stokes's constitutional rights by "withholding" crucial evidence about the false testimony of a key witness in the case, according to court documents.He took his first free breaths this afternoon after almost 40 years, and he is very happy and humbled.
- Michael J. Diamondstein
Despite that fact that multiple videos showed local rap singer, Monte Small Atwell aka Benjy killing the decedent, a Philadelphia jury found Mr. Atwell Not Guilty of Murder. The video clearly showed that the unarmed decedent was chasing Mr. Atwell. Mr. Atwell’s attorney, Michael Diamondstein litigated a very effective self-defense case. After a number of withering cross examinations and a closing wherein Mr. Diamondstein exhorted the jurors that his client “would rather be judged by 12 than carried by 6” the jury agreed that Mr. Atwell’s actions were justified.Mr. Diamondstein saved my life. He is the best there is.
- Monte Small Atwell aka Benjy
Six members of an elite Philadelphia narcotics squad were acquitted of federal corruption charges – a verdict the men described as “vindication” after nearly a decade of federal scrutiny surrounding their conduct. A jury of six men and six women took 5 1/2 days to reject prosecutors’ arguments that former Officers Thomas Liciardello, Brian Reynolds, Michael Spicer, Perry Betts, Linwood Norman, and John Speiser routinely beat and robbed drug suspects during their time as members of the Narcotics Field Unit.The things that were said about these honorable men and police officers over the last eight to 10 months were ridiculous. A lot of people in this city owe these heroes an apology.
- Michael J. Diamondstein
Philadelphia District Attorney Seth Williams pleaded not guilty to 23 counts of fraud, extortion, and bribery-related charges. But the problems of the city’s cash-strapped top prosecutor continued to mount outside the courtroom, a day after federal authorities accused him of repeatedly selling his influence to wealthy benefactors willing to bankroll his luxury tastes.This indictment is 24 hours old and yet too many politicians and commentators have already tried and convicted Seth Williams in the media. Simply because the government makes explosive allegations in a complaint doesn’t mean they’re going to prove it in a court of law.
- Michael J. Diamondstein
It's 8:00 on a September morning but Michael Diamonstein has already been in his office for hours. A criminal defense lawyer, Diamondstein likes to be prepared before he goes to court. That preparation paid off to get an innocent man cleared of all charges.The man gave me my life back.
- Yusef Bey
With evidence missing and the investigation tainted by the involvement of a detective who pleaded guilty to impeding justice, the District Attorney’s Office has withdrawn murder charges against a 28-year-old man, Dante Hill, in a 2011 shooting outside a North Philadelphia sports bar.Tremendous day, not only for Mr. Hill but for the entire Philadelphia justice system.
- Michael J. Diamondstein
Michael Diamondstein argued the original jail sentence is illegal because the previous judge assigned the case failed to address if Risoldi was eligible for re-entry, which would allow her to be released from jail early.Diamondstein added that Berks County Senior Judge Stephen Lieberman, who is now overseeing the case, has authority to reconsider the sentence made by the previous judge, who retired last year.
