The California Department of Insurance recently convicted a business owner of felony workers’ compensation insurance fraud. The investigation found that Jorge Maldonado, the owner of Pro-Care Building Maintenance, had under-reported the number of employees working for his business to three insurance carriers – Employers Preferred Insurance Co., Markel Corporation, and Atlas General Insurance Services.
This under-reporting occurred between 2015 and 2017, resulting in the insurance companies losing a total of $687,560 in workers’ compensation insurance premiums for the under-reported number of employees. On April 18, 2023, Maldonado was convicted of felony workers’ comp insurance fraud. In a restitution hearing held the following week, he was ordered to pay $687,560.96 to the victims.
The case serves as a reminder that committing workers’ compensation insurance fraud can have severe financial consequences for both perpetrators and victims. The Honorable Tami Bogert emphasized the importance of accurately reporting information to insurance carriers during her sentencing remarks.
Enforcement agencies like the California Department of Insurance play a critical role in investigating and prosecuting cases of insurance fraud to protect the integrity of the industry. This conviction sends a message that such activities will not be tolerated and those caught will face significant consequences.
In conclusion, this case highlights how important it is to report accurate information to insurance carriers and serves as a reminder that any form of fraudulent activities can result in severe financial repercussions for all parties involved.