The CEO of one of California’s largest vocational return to work counseling centers, Hazel Ortega, appeared in court yesterday after being charged with 23 felony counts including insurance fraud, theft and forgery, according to a press release issued by the California Department of Insurance.
A DOI investigation found Ortega allegedly defrauded at least four insurance companies by forging documents on behalf of unknowing injured workers.
The Department’s investigation began after receiving multiple referrals from insurance companies alleging Ortega, owner of Ortega Counseling Center, a motivational speaker, and author of “From Bounced Checks to Private Jets,” was referring injured workers to schools not approved and not eligible to receive voucher funds through the Supplemental Job Displacement Benefit (SJDB) program, which provides an allowance of $6,000 to $10,000 for educational retraining or skill enhancement for qualifying injured workers to provide them a marketable skill to re-enter the workforce after a workplace injury. This benefit is provided as a voucher that can be used at state-approved or accredited schools, the DOI explained.
Any injured workers who believe they may have been victimized by Ortega or the Ortega Counseling Center are urged to contact Detective Kuhlman or Sergeant Jimenez at the Department of Insurance by phone at (909) 919-2200.
Detectives located and interviewed injured workers who had SJDB and Vocational Return to Work counseling invoices submitted to insurance companies by Ortega and discovered Ortega was pressuring and coercing injured workers to attend the unapproved schools.
Ortega also submitted forms to insurers on the injured workers’ behalf which they had not seen or reviewed.
Multiple injured workers were shown documents submitted on their behalf which they had never seen and stated their signature had been forged.
In one instance, detectives interviewed an injured worker for whom Ortega submitted an invoice to an insurance company alleging she provided nearly five hours of counseling services. When the injured worker was contacted, they confirmed they had never heard of Ortega nor met with her for counseling services.
Ortega was arraigned and charged previously in Los Angeles County for her participation in another nearly $1 million dollar insurance fraud scheme. It is alleged Ortega and other vocational counselors received nearly $500,000 in illegal kick back payments for referring students to a fraudulent school in the Los Angeles area.
This case is being prosecuted by the Los Angeles County District Attorney’s Office.