California Business Owner Ordered to Pay $687K in Restitution for Workers’ Comp Fraud

A California business owner convicted of felony workers’ compensation insurance fraud was ordered to pay $687,560 in restitution to the victims.

An investigation by the California Department of Insurance determined that Jorge Maldonado, owner of Pro-Care Building Maintenance, under-reported the number of employees working for the business to three insurance carriers – Employers Preferred Insurance Co., Markel Corporation and Atlas General Insurance Services.

This under-reporting, which was between 2015 and 2017, reportedly resulted in the insurance companies losing a total of $687,560.96 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. At a restitution hearing last week, the Honorable Tami Bogert ordered Maldonado to pay $687,560.96 in restitution to the victims.

Deputy District Attorney John MacKenzie, with the Insurance Fraud Unit, prosecuted the case.

Topics
California
Fraud
Workers’ Compensation