Four individuals, including attorneys, have been charged after a California Department of Insurance investigation revealed a large-scale workers’ compensation fraud scheme that allegedly targeted Spanish-speaking workers and involved the illegal sale of more than 1,100 clients generating over $550,000 in unlawful referral fees.
The Department launched its investigation in October 2022 after receiving reports that Spanish-speaking workers were being contacted by a call center operating in Mexico. The callers allegedly promised individuals they could receive money by filing a workers’ compensation claim. In many cases, workers were misled and unknowingly completed official claims paperwork, which was then unlawfully sold to attorneys in Southern California.
“This is a disturbing case of alleged fraud that preyed on vulnerable, hardworking people,” said Insurance Commissioner Ricardo Lara. “These crimes threaten the integrity of our workers’ compensation system and will not be tolerated.”
The four defendants include:
– – Antony Gluck, 55, of San Bernardino, who was arrested by Department detectives. He is charged with felony conspiracy and unlawful referrals and was booked at West Valley Detention Center on $500,000 bail.
– – Michael De La Garza, 41, of Fontana, was arrested by Department detectives and is charged with felony conspiracy and unlawful referrals. He was booked at West Valley Detention Center on $500,000 bail.
– – Arely Franco, 42, of San Diego, who was arrested last week, while attempting to enter the United States at a port of entry. Franco is charged with felony conspiracy and multiple counts of unlawful referrals of workers’ compensation claims. She was arraigned this week and released on her own recognizance.
– – Juan Leal, 57, of Riverside, has prior convictions for similar offenses. He surrendered to the court this week and was arraigned on charges of felony conspiracy and unlawful referrals.
From January 2022 to September 2023, Franco allegedly sold approximately 320 clients to attorney De La Garza and his business partner Leal for $168,750. From September 2021 to October 2024, Franco sold an additional 798 clients to attorney Gluck for $388,500.
According to a 2024 report from the Workers’ Compensation Insurance Rating Bureau, the average workers’ compensation claim costs approximately $13,000. Based on this figure, the estimated loss in this case exceeds $14.5 million.
The San Bernardino County District Attorney’s Office is prosecuting the case.