A plumbing contractor has been ordered to pay $1 million in restitution after being found guilty of workers’ compensation fraud. Daniela G. Birdwell, the 41-year-old owner of GPS Plumbing, entered a guilty plea to one count of insurance premium fraud. In addition to the hefty restitution, a judge sentenced her to two years of formal felony probation and required her to complete 320 hours of community service. Birdwell must also pay $10,000 each month towards the restitution amount.
The State Compensation Insurance Fund provided workers’ comp coverage to GPS Plumbing from June 2016 through May 2021. The fraud came to light when investigators noticed discrepancies between the wages Birdwell reported to the Employment Development Department and those reported to the State Fund during routine audits.
Following these findings, the State Fund conducted a thorough audit of GPS Plumbing’s records, which revealed millions of dollars in unreported payroll. The Special Investigation Unit of the State Fund then forwarded their findings to the San Diego County District Attorney’s Office and the California Department of Insurance for further investigation.
Deputy District Attorney David Bagheri took the lead in prosecuting the case, which highlights the importance of accurate reporting in the workers’ compensation system. The penalties imposed on Birdwell serve as a reminder of the serious consequences of committing fraud in this area.