CA Woman Convicted of $525,000 in Workers’ Compensation Fraud

Liz Carey

Modesto, CA (WorkersCompensation.com) – A California temporary employment agency owner has pleaded no contest to charges she under-reported her payroll in order to reduce her workers’ compensation premiums.

Aileen Ramirez, 31, of Denair, CA, was charged with workers’ compensation fraud, by the Stanislaus County District Attorney’s Office. The District Attorney’s Office dropped two other counts of insurance fraud in exchange for the no contest plea.

In a press release, prosecutors said that Ramirez was the owner and CEO of Quality Employment Services, LLC, a temporary employment agency that provided workers to cover employee shortages to client companies.

Prosecutors said Ramirez purchased workers’ compensation insurance between 2012 and 2014. But an audit of her policy found she under-reported her payroll and the total number of employees she had working for her, in order to lower her workers’ compensation premium. Investigators said she under-reported her payroll by more than $2.8 million, resulting in a loss to the state workers’ compensation fund of more than half a million dollars.

She was charged with workers’ compensation fraud in April 2016, and pleaded no contest late last month. Ramirez was sentenced to serve 120 hours of community service and three years of probation. Additionally, Ramirez was ordered to pay restitution to the California State Compensation Insurance Fund in the amount of $525,253.58.

The public information officer for the Stanislaus County District Attorney’s Office did not immediately respond to calls for comment.