On January 21st, 2022

Business Owner Pleads Guilty to Workers’ Compensation Insurance Fraud A California Department of Insurance Fraud Division investigation

VENTURA, California – On January 20, 2022, the Ventura County District Attorney’s Office announced that Judy Hein, 72, of Rhinelander, Wisconsin, pled guilty to two counts of felony workers’ compensation insurance fraud. This case was investigated the California Department of Insurance Fraud Division and prosecuted by the District Attorney’s Office Workers’ Compensation Insurance Fraud Unit.

From 2013 through 2017, Hein was a co-owner of Cal Roofing Inc. located in Simi Valley. During that time, Hein underreported the true amount of company payroll by over $3 million to her workers’ compensation insurance company, State Fund. Hein’s fraud caused State Fund to lose $1.6 million in premium payments.

At the time of her guilty plea, Hein paid $600,000 in partial restitution to State Fund. Hein is scheduled to be sentenced on February 23, 2022, at 9:00 a.m. in courtroom 23 of the Ventura County Superior Court.

“Workers’ Compensation Premium Fraud is not a victimless crime,” said District Attorney Nasarenko. “It allows unscrupulous businesses to gain an unfair advantage over their competitors and risks the safety and health of their employees.”

“It may have taken years for this crime,  investigators and the judicial system to catch up to this individual and see the case through prosecution, but it is an example of the work state investigators and prosecutors do to see that justice is served and the state is compensated through restitution,” said California Statewide Law Enforcement Association (CSLEA) President Alan Barcelona.

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