April 7, 2025 | JacobiJournal.com — San Diego Plumber Fined: Daniela G. Birdwell, a Spring Valley-based plumbing contractor and owner of GPS Plumbing, has been ordered to pay $1,030,062 in restitution. The penalty follows her guilty plea in a workers’ compensation premium fraud case, according to the San Diego County District Attorney’s Office.
The plumber fined in this case admitted to intentionally underreporting payroll in order to avoid paying higher workers’ compensation premiums, a scheme that allowed her business to operate at a lower cost while putting employees and honest competitors at a disadvantage. Prosecutors emphasized that this type of fraud is not a victimless crime. Workers lose the protection they are legally entitled to if injured on the job, while insurers and policyholders shoulder increased costs.
Sentencing and Penalties
As part of the plea agreement, Birdwell will serve two years of probation. She must also complete 320 hours of community service and pay $10,000 per month toward restitution.
District Attorney Summer Stephan commented on the case:
“Employers who engage in premium fraud are not only breaking the law, but they also gain an unfair advantage over their competitors. Our Insurance Fraud Division remains committed to holding these businesses accountable, protecting workers, and ensuring a level playing field.”
Discovery of the Fraud
The fraud was discovered during a routine audit by the State Compensation Insurance Fund. Investigators noticed major differences between payroll figures reported to the Employment Development Department (EDD) and those reported during the company’s insurance audits. San Diego Plumber Fined
As a result, the State Fund found millions of dollars in unreported payroll between June 2016 and May 2021.
The Investigation and Prosecution
Following the audit, the State Fund’s Special Investigation Unit submitted its findings to both the San Diego County District Attorney’s Office and the California Department of Insurance. Consequently, this led to Birdwell’s prosecution and sentencing.
The Broader Impact of Insurance Fraud
Insurance fraud remains a serious and costly issue. Nationwide, it costs consumers between $80 billion and $90 billion annually. In California, it accounts for nearly $15 billion each year. Notably, it ranks as the second-largest economic crime in the state, just behind tax evasion.
For official guidance and updates on workers’ compensation fraud cases, visit the California Department of Insurance – Workers’ Compensation Fraud.
FAQs: About San Diego Plumber Fined Case
What was the San Diego plumber fined for?
The San Diego plumber fined over $1M, Daniela Birdwell, was convicted of workers’ compensation premium fraud after underreporting payroll for years.
How much must the San Diego plumber fined in the fraud case pay back?
Daniela Birdwell was ordered to pay $1,030,062 in restitution, with $10,000 monthly installments, alongside probation and community service.
Why is the San Diego plumber fined case significant for businesses?
The San Diego plumber fined case highlights how insurance fraud gives businesses an unfair advantage and puts honest employers and workers at risk.
How was the case uncovered?
The San Diego plumber fined more than $1 million was investigated after a State Compensation Insurance Fund audit revealed discrepancies between payroll records reported to state agencies and insurance audits.
Why is the case significant for California?
The San Diego plumber fined case highlights how workers’ comp fraud undermines fair business practices, drives up costs for honest employers, and impacts the integrity of California’s insurance system.
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