Sacramento Business Owner Fined Over $687K for Workers’ Comp Fraud

In Sacramento County, a significant case of workers’ compensation insurance fraud has culminated in a hefty restitution order. Jorge Maldonado, owner of Pro-Care Building Maintenance, was found guilty of felony insurance fraud by underreporting his employee count to lower insurance premiums. The fraud, which occurred between 2015 and 2017, involved three insurance carriers: Employers Preferred Insurance Company, Markel Corporation, and Atlas General Insurance Services, leading to a loss of $687,560.96 in premiums.

The case was brought to light following a referral to the California Department of Insurance (CDI), which then conducted a thorough investigation into the discrepancies. The fraudulent actions not only jeopardized the safety and coverage of Maldonado’s employees but also disrupted market competition by allowing his business to unfairly underbid competitors, impacting other businesses and consumers within the industry.

The restitution hearing, led by the Honorable Tami Bogert, concluded with Maldonado being ordered to compensate the affected insurance companies in full. This case underscores the ongoing challenges and financial impacts of insurance fraud in the business sector, emphasizing the need for strict enforcement and compliance to protect workers and maintain fair market practices.