“Workers’ comp insurance fraud puts employees who might be injured on the job, at risk and also often allows a business owner to produce lower bids for potential business contracts than those honest business owners paying into the fund for their correct number of employees.”

– CSLEA President Alan Barcelona

SACRAMENTO – On April 25, 2024, Jorge Maldonado, owner of Pro-Care Building Maintenance, was ordered to pay $687,560.96 in restitution to the victims in a workers’ compensation insurance fraud case.   Maldonado was convicted of felony workers’ compensation insurance fraud on April 18, 2023.

According to the Sacramento County District Attorney’s Office, the California Department of Insurance (CDI) received a suspected fraud referral on Maldonado. An investigation by CDI determined that between 2015 and 2017, Maldonado significantly under-reported the number of employees working for Pro-Care Building Maintenance to three insurance carriers – Employers Preferred Insurance Company, Markel Corporation and Atlas General Insurance Services.  This resulted in the insurance companies losing a total of $687,560.96 in workers’ compensation insurance premiums for the under-reported number of employees.

Insurance fraud of this nature puts employees of the company at risk if they are injured on the job. It also illegally reduces costs for the fraudsters, allowing them to undercut honest employers on job bids. This results in unfair competition and hurts other companies within the industry.