December 24, 2024 | JacobiJournal.com — California Vocational School CEO: Hazel Ortega, the CEO of one of California’s largest vocational return-to-work counselling centers, is facing 23 felony charges, including insurance fraud, theft, and forgery. Ortega, 53, who resides in La Habra, appeared in court this week after a California Department of Insurance (CDI) investigation uncovered evidence of her alleged fraudulent activities.
The case has drawn significant attention from both state regulators and industry experts, as it underscores growing concerns about fraudulent practices within vocational rehabilitation services. Authorities noted that misuse of the Supplemental Job Displacement Benefit program not only defrauds insurers but also deprives injured workers of legitimate opportunities for retraining and reemployment. Legal analysts suggest the outcome of Ortega’s prosecution could influence future oversight and compliance standards for vocational counselling centers across California.
Allegations of Forgery and Coercion
The CDI launched its investigation following complaints from insurers who accused Ortega of defrauding at least four insurance companies. According to the allegations, Ortega forged documents on behalf of injured workers without their knowledge or consent. Her business, Ortega Counseling Center, reportedly referred injured workers to unapproved schools ineligible to receive voucher funds through California’s Supplemental Job Displacement Benefit (SJDB) program.
The SJDB program provides financial assistance of $6,000 to $10,000 for injured workers seeking educational retraining or skill enhancement. To qualify, workers must use the funds at state-approved or accredited institutions. Ortega, however, pressured injured workers to attend unapproved schools and failed to inform them of alternative, eligible options.
Detectives interviewed injured workers who had SJDB and vocational counselling invoices submitted by Ortega. These workers revealed they never saw or reviewed the forms Ortega submitted to insurers on their behalf.
A History of Fraudulent Schemes
This is not the first time Ortega has faced legal trouble. She was previously charged in Los Angeles County for her role in a separate insurance fraud scheme that reportedly netted nearly $1 million. Investigators allege that Ortega, along with other vocational counsellors, received approximately $500,000 in illegal kickbacks for referring injured workers to a fraudulent school in the Los Angeles area.
The Los Angeles County District Attorney’s Office is currently prosecuting Ortega’s case. If convicted, she could face significant penalties, including restitution to defrauded insurers and potential prison time.
Broader Implications for Injured Workers
This case highlights critical vulnerabilities within programs designed to assist injured workers. Fraudulent activities like those alleged against Ortega undermine the integrity of vital benefits, leaving already vulnerable individuals without the support they need to return to work.
For official details on ongoing fraud prosecutions, visit the California Department of Insurance press releases.
FAQs: California Vocational School CEO
What charges does the California Vocational School CEO face?
The California Vocational School CEO, Hazel Ortega, faces 23 felony charges including insurance fraud, theft, and forgery.
How did the California Vocational School CEO allegedly commit insurance fraud?
Investigators allege the California Vocational School CEO forged documents and coerced injured workers into unapproved schools to misuse voucher funds.
What role does the SJDB program play in the California Vocational School CEO case?
The SJDB program provides retraining benefits, but prosecutors allege the California Vocational School CEO misdirected workers to ineligible schools.
Has the California Vocational School CEO faced fraud charges before?
Yes, the California Vocational School CEO was previously linked to another fraud scheme in Los Angeles County that involved nearly $1 million in losses.
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