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.
Allegations of Forgery and Coercion
California Vocational School CEO: 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.
The Jacobi Journal will continue to monitor this case and report on its implications for the vocational counselling industry. Stay informed by visiting jacobijournal.com for updates and in-depth analysis on legal and medical issues affecting workers’ compensation programs.
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