Vocational School Worker Reportedly Arraigned in $200,000 Fraud Scheme
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“FRESNO, Calif. — An investigation by the Central Valley Workers’ Compensation Fraud Task Force resulted in the arraignment today of Paul Steve Ramirez, 59, for allegedly fraudulently billing for workers’ compensation voucher services and failing to provide adequate training at the for-profit school he owns.
Ramirez was charged with 11 felony counts, including insurance fraud and prohibited referrals. The fraudulent insurance claims are estimated to reach $200,000.
Ramirez owns P. Steve Ramirez Vocational Training Centers, a private post-secondary educational institution and Supplemental Job Displacement Benefit (SJDB) training provider. Ramirez owns a second business which provides vocational counseling. SJDB vouchers provide up to $6,000 for educational retraining or skill enhancement to injured workers who have a permanent partial disability and are unable to return to work at their employer. Ramirez gained access to students at the counseling center and then self-referred them directly to his educational institution, allowing him to maximize his billing.
A Central Valley Workers’ Compensation Fraud Task Force investigation, led by the Fresno County District Attorney’s Office and the California Department of Insurance, found Ramirez fraudulently collected SJDB voucher funds related to 37 different students over a three-year period. Ramirez billed insurance companies for services even though the students did not meet the minimum qualifications for the program and also engaged in prohibited referrals for services.
Ramirez’s actions led to many of these injured workers not having a choice in the program they were in enrolled in and many of them not receiving the benefit because of unsuccessful completion of the course they should never have been placed into.
The Fresno County District Attorney’s Office is prosecuting this case.”
