Lawyer Gets Prison in Fraud Case : Courts: Insurance scam involved claims for nonexistent injuries in auto accidents that never occurred.

A Westminster lawyer was sentenced Friday to 16 months in prison for his role in what authorities called one of the state’s biggest auto insurance fraud schemes.

James Michael MacPhee, 43, and two employees of his law office were convicted in August of fraud, conspiracy and other charges in connection with a scam that involved “victims” seeking payments for injuries they never suffered in auto crashes that never occurred. A fourth defendant was acquitted.

MacPhee steadfastly maintained his innocence during the trial in Orange County Superior Court. His defense attorney at the time said MacPhee was betrayed by employees who acted without his knowledge.

Judge Jean H. Rheinheimer ruled Friday that MacPhee can remain free on $100,000 bail while he appeals his conviction.

Rheinheimer said the 16-month term matched the sentence she imposed on one of MacPhee’s co-defendants, Phuong Thi Bich (Nancy) Vo. The judge also ordered MacPhee to pay a $5,000 fine.

The prosecutor had sought a maximum six-year sentence for MacPhee.

“I had asked for a greater prison sentence and would have hoped for a longer sentence,” Deputy Dist. Atty. Kenneth Chinn said. “But I’m very pleased he’s been sentenced to state prison.”

The remaining co-defendant, Lam Hoang Luu, is scheduled to be sentenced next Friday.

MacPhee and his employees were among more than 35 people arrested in January, 1993, in connection with four loosely tied fraud rings in Orange and San Diego counties that authorities said cheated insurance companies by filing phony claims.

MacPhee’s firm filed a fraudulent claim for $48,000 that was not paid by the time arrests were made, Chinn said. Plans to file a second claim were cut short when the file was stolen from MacPhee’s office, Chinn said.

MacPhee testified during the trial that he took a 30% profit from insurance claims proceeds, while the remaining 70% went to two other employees who ran the law office. Chinn has said that such arrangements, although legal, encourage dishonest workers to drum up profits by filing false claims.

Chinn argued that MacPhee deserved a stiff sentence because he had lied during his testimony and abused his position of trust as a licensed lawyer.

“He abused that privilege horribly,” Chinn said.

MacPhee’s license to practice law is under temporary suspension as his appeal makes its way through the courts, according to a spokeswoman from the State Bar of California.

MacPhee lost his bid Friday for a new trial on grounds that his defense lawyer, hired days before the trial got underway, was unable to prepare adequately for the case. After a previous lawyer withdrew, MacPhee represented himself for several months before the trial.