Over $550,000 in Illegal Referral Fees Allegedly Collected by Attorneys in Statewide Scam
April 25, 2025 | JacobiJournal.com – SAN BERNARDINO, Calif. — In a major crackdown, four individuals—among them two attorneys—face felony charges after investigators uncovered a large workers’ compensation fraud scheme aimed at Spanish-speaking workers across Southern California. The fraudulent operation allegedly netted over $550,000 in unlawful referral fees and compromised more than 1,100 legitimate injury claims.
Investigation Reveals Call Center Operating Out of Mexico
In October 2022, the California Department of Insurance launched a probe following reports that a call center based in Mexico was contacting Spanish-speaking workers with deceptive promises. These callers reportedly told individuals they could receive money by simply filing a workers’ compensation claim.
However, investigators found that in many cases, victims were manipulated into signing official claims documents without full understanding. These completed claims were then illegally sold to attorneys in exchange for referral fees, violating California law.
“This is a disturbing case of alleged fraud that preyed on vulnerable, hardworking people,” said Insurance Commissioner Ricardo Lara. “These crimes threaten the integrity of our workers’ compensation system and will not be tolerated.”
Arrests and Charges Filed Against Four Defendants
The Department of Insurance, in collaboration with the San Bernardino County District Attorney’s Office, arrested the following individuals:
- Antony Gluck, 55, of San Bernardino – Arrested and booked on felony conspiracy and unlawful referral charges. Bail set at $500,000.
- Michael De La Garza, 41, of Fontana – Arrested and booked on similar felony charges. Bail also set at $500,000.
- Arely Franco, 42, of San Diego – Arrested at a U.S. port of entry. She faces multiple counts of felony conspiracy and unlawful referrals.
- Juan Leal, 57, of Riverside – Previously convicted for similar crimes, voluntarily surrendered and was arraigned this week.
How the Scheme Unfolded
From January 2022 to September 2023, Franco allegedly sold 320 clients to De La Garza and Leal for $168,750. Additionally, from September 2021 through October 2024, she sold 798 clients to Gluck for $388,500.
Given that the average workers’ compensation claim costs approximately $13,000, according to the 2024 WCIRB report, the total projected loss from the scheme exceeds $14.5 million.
Legal Action and System Integrity
The San Bernardino County District Attorney’s Office is now prosecuting the case. Authorities emphasize the need to protect injured workers from exploitation, especially within immigrant and vulnerable communities.
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