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The CEO of one of California’s largest vocational return to work counseling centers appeared in court this week after being charged with 23 felony counts including insurance fraud, theft and forgery.

Hazel Ortega, 53, of La Habra, was charged after a California Department of Insurance investigation reportedly found Ortega allegedly defrauded at least four insurers by forging documents on behalf of unknowing injured workers.

The CDI’S investigation began after receiving referrals from insurers alleging Ortega, owner of Ortega Counseling Center, a motivational speaker, and author of a self-help book, was referring injured workers to schools which were not approved and ineligible to receive the voucher funds through the Supplemental Job Displacement Benefit (SJDB) program. The program provides an allowance of $6,000 to $10,000 for educational retraining or skill enhancement for qualifying injured workers to provide them a marketable skill to re-enter the workforce after a workplace injury. The benefit is provided as a voucher that can be used at state-approved or accredited schools.

Detectives located and interviewed injured workers who had SJDB and Vocational Return to Work counseling invoices submitted to insurers by Ortega and discovered she was pressuring and coercing injured workers to attend these unapproved schools and not providing them with any other additional choices.

Ortega also submitted forms to insurers on injured workers’ behalf, which they reportedly had not seen or reviewed.

Ortega was arraigned and charged previously in Los Angeles County for her participation in another nearly $1 million-dollar insurance fraud scheme. It is alleged Ortega and other vocational counselors received nearly $500,000 in illegal kick back payments for referring students to a fraudulent school in the Los Angeles area.

The case is being prosecuted by the Los Angeles County District Attorney’s Office.

Topics California Fraud K-12