Los Angeles, CA — In a developing case of insurance fraud, authorities brought Hazel Ortega, CEO of one of California’s largest vocational return-to-work counseling centers, to court to face 23 felony charges. The charges include insurance fraud, theft, and forgery, stemming from allegations that she defrauded at least four insurance companies.
Allegations in Vocational CEO Fraud
The California Department of Insurance launched its investigation after receiving referrals from multiple insurance companies. Ortega, who owns Ortega Counseling Center and is a motivational speaker and author of From Bounced Checks to Private Jets, reportedly referred injured workers to unapproved schools ineligible for funds through the Supplemental Job Displacement Benefit (SJDB) program. This program provides $6,000 to $10,000 for educational retraining or skill enhancement, helping injured workers re-enter the workforce. To qualify, schools must be state-approved or accredited.
Investigators uncovered that Ortega pressured injured workers into attending these unapproved schools, neglecting to offer other options. Furthermore, she submitted documents to insurance companies without informing the workers or obtaining their consent. Interviews revealed that many injured workers were unaware of these submissions, with some stating their signatures were forged. For example, one injured worker confirmed that Ortega submitted an invoice for counseling services they never received and stated they had never met Ortega.
Previous Fraud Charges
Ortega’s legal troubles are not new. She faced previous charges in Los Angeles County for participating in a separate $1 million insurance fraud scheme. In that case, Ortega and other vocational counselors allegedly received nearly $500,000 in illegal kickbacks for referring students to a fraudulent school in the Los Angeles area.
Call for Victims to Come Forward
The Department of Insurance encourages injured workers to report any victimization by Ortega or Ortega Counseling Center by contacting Detective Kuhlman or Sergeant Jimenez at (909) 919-2200.
Broader Impact of Insurance Fraud
Ortega’s fraudulent actions undermine the SJDB program, which aims to support legitimately injured workers. This type of fraud not only diverts resources from those in need but also drives up costs for insurers and delays assistance for eligible workers. By addressing such schemes, authorities seek to protect the integrity of these vital programs.
Learn More
This case is being prosecuted by the Los Angeles County District Attorney’s Office. For additional details, visit the California Department of Insurance. To explore more stories about insurance fraud and medical-legal cases, visit MedLegalNews.com
