California Cleaning Company Charged for Workers’ Compensation Scheme
January 6, 2021
The owner of Pro-Care Building Maintenance, a Sacramento, California, cleaning company, was recently charged with three felony counts of insurance fraud, Insurance Journal reports.
Jorge Gerardo Maldonado was allegedly underreporting payroll to save on workers’ compensation insurance premiums of US$687,560 to three insurance carriers. The California Department of Insurance (CDI) launched the investigation after one of the insurance companies suspected Maldonado of fraud.
The CDI’s investigation found that Maldonado failed to report over $5 million of employee payroll to three insurance carriers from 2017 to 2019.
Maldonado surrendered to the Sacramento County Jail on December 23. The case is currently being prosecuted by the Sacramento County District Attorney’s office.
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