Sacramento, CA – Jorge Gerardo Maldonado of Sacramento was recently 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.
After one of the victim insurance companies suspected Maldonado of fraud, the California Department of Insurance launched an investigation into his Sacramento cleaning company Pro-Care Building Maintenance (Pro-Care) and found that Maldonado underreported payroll and committed premium fraud. Maldonado has owned Pro-Care since 2014.
On July 10, 2016, a Pro-Care employee was injured while on the job and a workers’ compensation insurance claim was filed with one of the company’s insurance carriers. During a review of the claim, it was found that Pro-Care underreported payroll and failed to report the end of policy payroll to the insurance company as the policy required.
The Department’s investigation further discovered that 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 self-surrendered to the Sacramento County Jail on Wednesday, December 23, 2020. The case is being prosecuted by the Sacramento County District Attorney’s Office.
Source: CDI