California Business Owner Sentenced for Workers’ Comp Insurance Fraud, Ordered to Pay $687,560 in Restitution

A California business owner has been convicted of felony workers’ compensation insurance fraud and ordered to pay $687,560 in restitution to the victims. The investigation by the California Department of Insurance found that Jorge Maldonado, the owner of Pro-Care Building Maintenance, had 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 between 2015 and 2017. This under-reporting led to 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. The Honorable Tami Bogert ordered Maldonado to pay $687,560.96 in restitution to the victims at a hearing last week. Deputy District Attorney John MacKenzie from the Insurance Fraud Unit prosecuted the case.

The case serves as a reminder of the consequences of committing insurance fraud and the importance of accurately reporting information to insurance carriers. It also highlights the efforts of the California Department of Insurance in investigating and prosecuting cases of insurance fraud to protect both the insurance industry and consumers. By holding individuals accountable for their actions, the department aims to maintain the integrity of the insurance system and ensure fairness for all parties involved.