Modesto, CA – Stanislaus County District Attorney Birgit Fladager recently announced that Aileen Ramirez, age 31, of Denair, has been convicted of felony workers’ compensation insurance premium fraud. This conviction resulted from a joint investigation by the California Department of Insurance, Fraud Division and the Amador County Workers’ Compensation Fraud Unit, which investigates and prosecutes insurance fraud cases in Amador, Stanislaus, Calaveras, and Tuolumne Counties through a grant provided by the California Department of Insurance.
In 2012, Ramirez was the owner and CEO of Quality Employment Services, LLC, in Modesto, a company that provided temporary workers to cover absences, skills shortages and seasonal workloads for client companies. Ramirez obtained a workers’ compensation policy for her business from the California State Compensation Insurance Fund (State Fund) in February, 2012 and maintained that policy through August, 2014. As an employer, Ramirez was required by state law to have workers’ compensation insurance for her employees and submit payroll records to the State Fund showing the number of employees and their income. This information helps the State Fund set workers’ compensation insurance premium ratesfor other employers throughout the state.
When State Fund performed an audit of the policy, it discovered that Ramirez had underreported her payroll and total number of employees in order to obtain a lower workers’ compensation insurance premium. In total, Ramirez underreported $2.8 million dollars in payroll that resulted in a loss to the State Fund of $525,253.58 in insurance premiums.
In April of 2016, Ramirez was charged with insurance fraud in Stanislaus County Superior Court. On February 27, 2018, Ramirez pled no contest to violating Insurance Code §11880(a), as a felony, in that she knowingly made false and fraudulent material statements to State Fund for the purposes
of determining and reducing the premium, cost or rate of her workers’ compensation insurance policy. She was immediately sentenced to 120 hours of community service, three years formal probation, and ordered to pay restitution of $525,253.58 to the State Compensation Insurance Fund.
Source: Stanislaus County DA