ESCONDIDO -- Fraud investigators from the district attorney's office visited Escondido last week, but officials are not releasing any details about the operation.

David Latucca, chief of the district attorney's insurance fraud division, said he could not comment on investigators' activity in the city because it is related to an ongoing investigation.

Sam Badrani, owner of Value Max and Viva Market, both on East Valley Parkway, said investigators came to his retail businesses Wednesday looking for records related to workers' compensation insurance, which the state requires.

Badrani said he was under the impression that investigators were making stops at multiple businesses in the city.

"It's a new thing, going over to the stores and checking," Badrani said. "It's been going on lately, but it's the first time they've been here."

Badrani said all of his paperwork was in order, and that satisfied investigators.

In 2006, Escondido was home to what officials then called one of the state's largest insurance premium fraud cases.

In that case, a roofing company listed a majority of its employees as managers rather than roofers, because managers are injured less often and cost less to insure, officials said.

Lower insurance costs allowed the company to underbid competitors who were paying full price to insure their employees, officials said.

The main defendants pleaded no contest in the case and were ordered to pay $3 million to the State Compensation Insurance Fund.

Contact staff writer Colleen Mensching at (760) 739-6675 or cmensching@nctimes.com.