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On July 10, 2016, a Pro-Care Building Maintenance employee was injured while on the job and a workers’ comp claim was filed with one of the company’s insurance carriers. During a review of the claim, it was reportedly found that Pro-Care underreported payroll and failed to report the end of policy payroll to the insurance company as the policy required.

The California Department of Insurance investigation further discovered that the company owner,Jorge Maldonado, failed to report payroll and employees of Pro-Care to three insurance carriers from 2017 through 2019. The alleged unreported payroll was over $5 million.

Maldonado was charged with three felony counts of insurance fraud after allegedly underreporting payroll and employees to illegally save on workers’ compensation insurance premiums, resulting in a $687,560 loss to three insurance carriers.

The Sacramento County District Attorney’s office announcedthat on April 18, 2023, Maldonado was convicted of felony workers’ compensation insurance fraud.

At a restitution hearing in April 2024, the Honorable Tami Bogert ordered Maldonado to pay $687,560.96 in restitution to the victims.

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 fraudster, allowing them to undercut honest employers on job bids. This results in unfair competition and hurts not only other companies within the industry, but also consumers who have fewer choices and less reputable companies to choose from.