April 17, 2025 | JacobiJournal.com – Fresno Executives Sentenced behind a long-running fraud operation will now serve time in federal prison. A U.S. District Court sentenced Marcus Asay, 69, and Antonio Gastelum, 53, for their roles in an elaborate scheme that targeted over 3,000 victims nationwide.
Judge Dale A. Drozd sentenced Asay to five years and Gastelum to two years in prison. Their company, Agricultural Contracting Services Association—doing business as American Labor Alliance (ALA)—must also pay a $2.5 million fine. Additionally, both Asay and ALA owe $69,250 in restitution.
Fraud Spanning Nearly a Decade
A federal jury convicted the defendants in June 2024 after a five-week trial. Prosecutors proved that from 2011 to 2019, Asay and Gastelum orchestrated multiple fraudulent operations through ALA, including pension fraud, workers’ compensation fraud, and an Affordable Care Act (ACA) exemption scam. They also laundered money to cover their tracks.
How the Pension Scheme Worked
Asay and Gastelum promised clients that their retirement savings would grow through a 401(k) plan managed by ALA. However, instead of investing those funds, the duo diverted the money for personal use. They splurged on fine dining, rare coins, online companionship services, and rent for Asay’s upscale lakefront home in Fresno.
To conceal the missing funds, they redirected revenue from their workers’ compensation scam and falsely labeled it as pension money. This manipulation led to over $620,000 in losses. Fresno Executives Sentenced
Faking Workers’ Compensation Coverage
In a separate scam, the defendants falsely claimed that national insurance carriers backed ALA’s workers’ comp policies. They issued forged certificates and policy declarations to customers in California and other states. Many businesses relied on those documents to stay compliant and retain contracts.
Rather than admit wrongdoing, Asay actively discouraged customers from cooperating with investigators. Authorities later confirmed the policies had no backing from legitimate insurers. This part of the scheme brought in $2.25 million in premiums.
Misleading Health Insurance Exemption Offers
Additionally, ALA sold fake ACA hardship exemptions to consumers for hundreds of dollars. In reality, only the federal government can issue such exemptions—and qualified individuals can receive them at no cost. By misrepresenting this process, ALA exploited consumers who were seeking relief from healthcare penalties.
Lies Under Oath Add to Their Sentences
Both Asay and Gastelum took the stand in their defense. However, the court found they lied under oath, which resulted in longer prison sentences. Their perjury underscored their continued intent to deceive, even during trial.
Broad Investigation, Federal Charges
Federal agents from multiple agencies collaborated to bring the case to court, including:
- U.S. Department of Labor
- Internal Revenue Service (IRS) Criminal Investigation
- Federal Bureau of Investigation (FBI)
- Social Security Administration Office of Inspector General
Assistant U.S. Attorneys Michael Tierney, Joseph Barton, and Stephanie Stokman led the prosecution, which ultimately held the perpetrators accountable.
Read the official U.S. Attorney’s Office press release on Fresno Executives Sentenced for full case details and court statements.
New Update: Fresno Executives Sentenced in American Labor Alliance Workers Compensation and Pension Fraud Case
The Fresno executives sentenced in the American Labor Alliance fraud case remain a significant example of federal enforcement against fraudulent workers compensation insurance arrangements and retirement programs. In April 2025, federal authorities announced prison sentences for Marcus Asay and Antonio Gastelum following their convictions for participating in multiple schemes operated through Agricultural Contracting Services Association, doing business as American Labor Alliance (ALA).
U.S. District Judge Dale A. Drozd sentenced Asay to five years in federal prison and Gastelum to two years. The court also imposed a $2.5 million fine against ALA and restitution obligations totaling $69,250 against Asay and the organization.
The Fresno executives sentenced in the case had previously been convicted by a federal jury in June 2024. Prosecutors established that the defendants operated fraudulent arrangements between 2011 and 2019 involving retirement contributions, purported workers compensation insurance, and Affordable Care Act hardship exemptions.
One scheme targeted individuals seeking retirement benefits through a purported 401(k) program. Rather than properly administering the contributions, the defendants diverted funds toward personal expenses and unauthorized business expenditures.
Investigators identified spending involving luxury dining, collectible coins, personal services, and residential expenses. The retirement scheme reportedly resulted in losses exceeding $620,000.
The Fresno executives also marketed workers compensation coverage that falsely appeared to be supported by established national insurance carriers. Customers received certificates and policy documents that misrepresented the existence of legitimate insurance protection.
Federal prosecutors determined that the insurers identified in those documents had not authorized the purported policies. The workers compensation operation generated approximately $2.25 million in premiums.
Businesses relying on those certificates potentially faced substantial financial exposure because the documents did not establish valid coverage. The case demonstrates why employers must verify insurance arrangements directly with authorized carriers.
The defendants also sold purported hardship exemptions associated with federal health insurance requirements. Prosecutors established that these arrangements misrepresented the availability and validity of the exemptions being offered.
The schemes were connected through financial transactions that helped conceal the misuse of customer payments and retirement contributions.
During sentencing, the court also considered the defendants’ testimony at trial. The original federal proceedings reported that the judge found the defendants had provided false testimony, which affected the sentencing determinations.
The Fresno executives sentenced in the case faced consequences extending beyond imprisonment, including the corporate fine and restitution obligations.
The restitution amount should not be confused with the total financial losses attributed to the fraudulent operations. Criminal fines and restitution serve different purposes and are imposed under distinct legal standards.
The investigation involved federal agencies responsible for financial crimes, labor-related enforcement, and fraud affecting government programs.
As of October 2026, the April 2025 prison sentences, corporate fine, and restitution obligations remain the documented outcomes addressed in this update. Subsequent appellate decisions or confirmation that the financial obligations have been fully satisfied have not been independently verified here.
For employers, the prosecution reinforces the importance of verifying workers compensation policies, confirming insurer authorization, and maintaining accurate insurance documentation.
For workers and retirement plan participants, the case highlights the risks of relying on financial programs that lack independently verifiable administration and regulatory compliance.
The continuing significance of the Fresno executives sentenced in this fraud case lies in demonstrating how deceptive insurance certificates, misappropriated retirement funds, and fraudulent exemption programs can result in federal criminal convictions and substantial financial penalties.
FAQs: Fresno Executives Sentenced 2025
What crimes were the Fresno executives sentenced for?
The Fresno executives were sentenced for pension fraud, workers’ compensation fraud, ACA exemption scams, and money laundering.
How long will the Fresno executives sentenced in 2025 serve in prison?
Marcus Asay received five years, and Antonio Gastelum received two years in federal prison for their roles in the fraud scheme.
What restitution must the Fresno executives sentenced in this fraud case pay?
They must pay $69,250 in restitution and a $2.5 million fine as part of their sentence.
Stay informed with the latest updates on insurance fraud, workers’ compensation violations, and more at JacobiJournal.com.
🔎 Read More from JacobiJournal.com:
- Marketer Susan Postnikoff Linked to CA Workers’ Comp Ghostwriting Scheme
- Consumer Watchdog Sues CA Department of Insurance Over FAIR Plan Surcharges
- Former Texas Insurance Broker Charged in Alleged Fraud Scheme
- New York Inspector Uncovers $2.7M Workers’ Comp Fraud in 2024
- LA Couple Sentenced for Underreporting Payroll, Filing False Workers’ Comp Claims
