LA Delivery Owners Ordered to Pay $2.25M in Restitution
LOS ANGELES — LA Delivery Owners Ordered: The owners of three Los Angeles-based delivery companies have been ordered to pay more than $2.25 million in restitution after underreporting over $21 million in employee payroll to avoid workers’ compensation insurance premiums. Sentencing Details On April 3, 2025, the California Department of Insurance (CDI) announced that John Nemandoust, 70, and Annette Assil, 62, were sentenced for their roles in the scheme. Nemandoust received 60 days in county jail, while Assil received 30 days. Both were also sentenced to 10 years of felony probation and must repay $2,254,748 in unpaid insurance premiums. LA Delivery Owners Ordered How the Scheme Worked The couple operated A-1 Valley Services, Prompt Delivery, and Affordable Messenger. Between 2013 and 2017, they only purchased workers’ comp coverage for A-1 Valley Services. Meanwhile, the other two companies remained uninsured. When workers from the uninsured companies were injured on the job, the owners allegedly filed the claims under A-1 Valley’s insurance policy. Investigative Findings A forensic audit revealed that the companies had a combined gross payroll of more than $25 million. However, they only reported $1.4 million to their insurance carrier. This misreporting allowed them to evade approximately $3 million in insurance premiums. The Los Angeles County District Attorney’s Office prosecuted the case following a CDI investigation. Source: Los Angeles County District Attorney’s Office 📚 Read More on Workers’ Comp and Insurance Fraud Catch the latest updates at JacobiJournal.com.
Women Charged With Fraud After SUV Found in Mississippi River
VICKSBURG, MISSISSIPPI — Women Charged With Fraud: A routine stolen vehicle report took a surprising turn on March 21, when authorities discovered a partly submerged SUV in the Mississippi River—the same one reported stolen just moments earlier. Suspicious Discovery in the Water After receiving the initial 911 call about the stolen Ford Expedition, a second call came in about a vehicle found in the river near a landing. Local responders, including the Warren County Sheriff’s Office, fire-rescue crews, and search teams, rushed to the scene. Women Charged With Fraud Using a skiff launched from a nearby boat, authorities conducted a thorough search. However, they found no one inside the SUV or in the surrounding waters, according to the Vicksburg Daily News. Fraud Uncovered Soon after, investigators confirmed that the submerged Ford Expedition belonged to Heather Kay McCoy, the woman who had reported it stolen. On April 1, law enforcement arrested McCoy and charged her with insurance fraud. Authorities also arrested Amber Spencer, whom they identified as an alleged accomplice. She was charged with conspiracy to commit a felony. Next Steps in the Case Although officials did not release details on how they quickly uncovered the fraud attempt, both women posted bail. The case is now pending a grand jury review, expected in the coming weeks. 📚 Read More on Insurance Fraud Cases Stay updated with the latest cases at JacobiJournal.com.
San Diego Plumber Fined Over $1M for Workers’ Comp Fraud
SAN DIEGO — San Diego Plumber Fined: Daniela G. Birdwell, a Spring Valley-based plumbing contractor and owner of GPS Plumbing, has been ordered to pay $1,030,062 in restitution. The penalty follows her guilty plea in a workers’ compensation premium fraud case, according to the San Diego County District Attorney’s Office. Sentencing and Penalties As part of the plea agreement, Birdwell will serve two years of probation. She must also complete 320 hours of community service and pay $10,000 per month toward restitution. District Attorney Summer Stephan commented on the case: “Employers who engage in premium fraud are not only breaking the law, but they also gain an unfair advantage over their competitors. Our Insurance Fraud Division remains committed to holding these businesses accountable, protecting workers, and ensuring a level playing field.” Discovery of the Fraud The fraud was discovered during a routine audit by the State Compensation Insurance Fund. Investigators noticed major differences between payroll figures reported to the Employment Development Department (EDD) and those reported during the company’s insurance audits. San Diego Plumber Fined As a result, the State Fund found millions of dollars in unreported payroll between June 2016 and May 2021. The Investigation and Prosecution Following the audit, the State Fund’s Special Investigation Unit submitted its findings to both the San Diego County District Attorney’s Office and the California Department of Insurance. Consequently, this led to Birdwell’s prosecution and sentencing. The Broader Impact of Insurance Fraud Insurance fraud remains a serious and costly issue. Nationwide, it costs consumers between $80 billion and $90 billion annually. In California, it accounts for nearly $15 billion each year. Notably, it ranks as the second-largest economic crime in the state, just behind tax evasion. 📚 Read More on Workers’ Comp and Insurance Fraud: Visit JacobiJournal.com for daily updates on insurance fraud, workers’ comp news, and legal developments.
Los Angeles Delivery Owners to Repay for Workers’ Comp Fraud
LOS ANGELES — Los Angeles Delivery Owners: On April 3, 2025, the California Department of Insurance (CDI) announced the sentencing of John Nemandoust, 70, and Annette Assil, 62, for a long-running workers’ compensation fraud scheme. The Los Angeles couple underreported more than $21 million in employee payroll across their three delivery companies. Sentencing and Restitution A judge sentenced Nemandoust to 60 days in county jail and Assil to 30 days. In addition, both received 10 years of felony probation and must repay $2,254,748 in restitution for unpaid workers’ compensation insurance premiums. Uninsured Companies and Fake Claims CDI began investigating after learning that two of the couple’s businesses—Prompt Delivery and Affordable Messenger—operated without workers’ compensation insurance. The third company, A-1 Valley Services, held an active policy. Between 2013 and 2017, the couple only insured Valley Services. When employees from the uninsured companies suffered work-related injuries, Nemandoust and Assil submitted their claims under Valley Services’ policy. Investigators confirmed that at least 20 claims were improperly filed during this time. Los Angeles Delivery Owners Massive Payroll Underreporting A forensic audit revealed that the companies had a combined gross payroll of over $25 million, but only reported about $1.4 million to their insurer. As a result, they dodged nearly $3 million in workers’ comp premiums. Prosecution The Los Angeles County District Attorney’s Office prosecuted the case, emphasizing the importance of holding business owners accountable for defrauding state insurance systems. Source: California Statewide Law Enforcement Association 📚 Read More on Workers’ Comp and Insurance Fraud: 📌 Stay updated at JacobiJournal.com for the latest in fraud, insurance, and legal news.
CA Delivery Company Owners Fined $2M for Workers’ Comp Fraud
CA Delivery Company Owners: A Los Angeles couple received sentences after an investigation uncovered that they underreported $21 million in payroll for their delivery companies. This fraud scheme allowed them to avoid significant workers’ compensation insurance premiums. Uninsured Companies and Fraudulent Claims John Nemandoust (70) and Annette Assil (62) were sentenced for committing workers’ comp fraud. Nemandoust received 60 days in county jail, and Assil got 30 days. They also received 10 years of felony probation and must pay $2.2 million in restitution for unpaid premiums. CA Delivery Company Owners The California Department of Insurance (CDI) began the investigation after reports indicated that two of the couple’s companies, Prompt Delivery and Affordable Messenger, had no insurance. Between 2013 and 2017, the couple only maintained workers’ comp insurance for A-1 Valley Services, their third company. Underreported Payroll and Fraudulent Claims Investigators found that when employees from the uninsured companies suffered work-related injuries, the couple submitted fraudulent claims under A-1 Valley Services’s policy. Over the four years, the couple filed claims for at least 20 employees from the uninsured companies. A forensic audit showed that the companies reported only $1.4 million in payroll to their insurance carrier, though their actual payroll exceeded $25 million. This underreporting allowed the couple to evade $3 million in workers’ comp premiums. Prosecution and Legal Consequences The Los Angeles County District Attorney’s Office prosecuted the case. The couple now faces penalties for their fraudulent actions. 📚 Read More on Workers’ Comp Fraud: 📰 Stay updated on the latest news at JacobiJournal.com.
Pennsylvania Woman Charged for Fraudulent Claim on TV
Pennsylvania Woman Charged: A woman from Pennsylvania now faces insurance fraud charges after claiming wind damage to her barn, even though a reality TV crew had already taken it apart. TV Deal Leads to Investigation Tracey Jeffreys, 63, from the Milton area, initially struck a deal with the Discovery Channel’s “Barnwood Builders”. The show planned to dismantle her old barn and use the wood in a reconstruction project. However, after inspecting the structure in 2022, the crew found part of the wood was infested with powder post beetles. As a result, they decided to salvage only some usable sections, and Jeffreys received $20,000 for the materials. $100K Insurance Claim Raises Suspicions Soon after the transaction, Jeffreys submitted a $100,000 claim to Donegal Mutual Insurance, stating that strong winds had knocked down part of the barn. Yet, an insurance adjuster couldn’t verify that wind caused the damage. Weather Records and Witnesses Contradict the Claim Investigators then checked National Oceanic and Atmospheric Administration (NOAA) data. On the day of the supposed damage, wind speeds averaged just 7 mph, far too low to destroy a barn. In addition, neighbors reported seeing the TV crew take the structure apart. The show’s team also confirmed they had dismantled the barn as planned. Pennsylvania Woman Charged Jeffreys Tries to Backtrack When confronted, Jeffreys attempted to withdraw her claim. She claimed she had forgotten to tell the crew not to remove the section she now said was damaged by wind. The Pennsylvania Attorney General’s Office has charged her with insurance fraud, and she was released on bail. 📚 Read More on Insurance Fraud: 📬 Never miss a headline — subscribe for fraud and insurance news updates at JacobiJournal.com.
California Bill: Insurers Notify Owners for Aerial Inspection
A new California bill, Assembly Bill 75 (AB 75), would require insurance companies to notify homeowners at least 30 days in advance before conducting aerial imaging inspections. The bill also mandates that insurers provide policyholders with instructions on how to request access to the aerial photos taken of their property. Transparency in Insurance Inspections The bill, authored by Assemblymember Lisa Calderon (D-Whittier), aims to increase transparency in insurance inspections and help homeowners retain affordable coverage. Calderon, who chairs the Assembly Insurance Committee, emphasized the need for this legislation amid rising non-renewals and cancellations. California Bill “We are in the middle of an insurance crisis, and Californians are facing non-renewals or policy cancellations, sometimes without justification. AB 75 empowers homeowners, especially those at risk of losing their policies due to undisclosed inspection practices,” Calderon said. Concerns Over Aerial Imaging Aerial imaging has become a widely used tool in the insurance industry for assessing property risk and processing claims. However, many policyholders have expressed concerns over coverage losses tied to aerial photos taken without their knowledge. Upcoming Committee Hearing AB 75 is scheduled for a hearing before the Assembly Insurance Committee on Wednesday at 9:30 a.m. (PST). If passed, the bill could introduce greater accountability in insurer inspections and provide homeowners with a clearer understanding of how aerial imagery affects their policies. Source: Insurance Journal ✅ Stay Updated: Follow the latest insurance legislation and industry news at JacobiJournal.com 📚 Read More Related Articles: 📢 Subscribe Now! Get breaking insurance news and insights at JacobiJournal.com.
CA Plumbing Contractor Fined $1M for Workers’ Comp Fraud
CA Plumbing Contractor Fined : A California plumbing contractor has been ordered to pay $1 million in restitution to the State Compensation Insurance Fund after pleading guilty to workers’ compensation insurance fraud. Fraud Discovery and Investigation Daniela G. Birdwell, 41, owner of GPS Plumbing, admitted to underreporting payroll to reduce insurance premiums. A special investigation unit from the State Fund uncovered the fraud after noticing discrepancies between wages reported to the Employment Development Department (EDD) and those declared during policy audits. A follow-up audit of GPS Plumbing’s workers’ compensation records revealed millions of dollars in unreported payroll. The State Fund’s Special Investigation Unit submitted its findings to the San Diego County District Attorney’s Office and the California Department of Insurance, leading to prosecution. CA Plumbing Contractor Fined Legal Consequences Birdwell pleaded guilty to one count of workers’ compensation insurance premium fraud. A judge sentenced her to:–Two years of formal felony probation–320 hours of community service–$1 million in restitution (payable in $10,000 monthly installments) Source: Insurance Journal Deputy District Attorney David Bagheri led the prosecution. ✅ Stay Updated: Get the latest workers’ compensation fraud news at JacobiJournal.com 📚 Read More Related Articles: 📢 Subscribe Now! For breaking news and exclusive insights, visit JacobiJournal.com.
Iowa Man Gets 10 Years for Fake Rolex Theft Insurance Scam
Fake Rolex Theft: An Iowa man will spend the next decade behind bars after admitting to an elaborate insurance fraud scheme involving counterfeit Rolex watches. Bryce Douglas Murphy, 33, of Peosta, pleaded guilty to Insurance Fraud and Fraudulent Practice, both Class D felonies. Investigators from the Iowa Insurance Division’s Fraud Bureau uncovered the scam, leading to his conviction. The Fraudulent Rolex Claim Murphy filed an insurance claim, falsely reporting that two Rolex watches had been stolen from his hotel room while attending an NFL game. To support his claim, he submitted fabricated documents, including a fake purchase receipt for the watches. However, investigators discovered that Murphy had pulled the same scheme before. In 2019, he filed a nearly identical claim with another insurer and received a $9,998 payout. Further analysis revealed that the Rolex watches were counterfeit, and Murphy had forged the purchase receipt. Fake Rolex Theft Authorities arrested Murphy on June 12, 2023. Sentencing and Penalties After pleading guilty, Murphy received a 10-year prison sentence and was ordered to pay $2,395 in fines. The Iowa Insurance Division emphasized its commitment to cracking down on fraudulent claims. Source: Iowa Insurance Division ✅ Stay Updated: Get the latest insurance fraud news at JacobiJournal.com 📚 Read More Related Articles: 📢 Subscribe Now! For breaking news and exclusive insights, visit JacobiJournal.com.
Florida’s Universal P&C Fined $4M for Inflated Hurricane Irma Claims
Florida’s Universal P&C Fined: Universal Property & Casualty Insurance Co. must pay a $4 million fine after a state investigation found the insurer had submitted ineligible claims to Florida’s Hurricane Catastrophe Fund (Cat Fund). The settlement prevents Universal from collecting more than $30 million in disputed reimbursements. Investigation and Settlement Florida Attorney General James Uthmeier announced the settlement on Tuesday, citing findings from a whistleblower lawsuit. Investigators discovered that Universal had backdated claims from Hurricane Irma in 2017 to increase reimbursements. “Insurance fraud harms Floridians, and this case ensures that the Cat Fund only pays for legitimate storm-related losses,” Uthmeier said. Universal, based in Fort Lauderdale, denied any wrongdoing. Company officials argued that the claims had gone through the Cat Fund’s standard review process over six years. “The Cat Fund conducts a thorough commutation process, evaluating loss data to determine final settlements,” Universal stated. “This process applies to all insurers and led to a mutual agreement.” Whistleblower Lawsuit and Legal Costs A former Universal employee filed the whistleblower lawsuit in 2020, two years after leaving the company. Universal claimed the whistleblower misunderstood reporting procedures, leading to inaccurate allegations. The lawsuit, filed in Leon County, remains sealed. Florida’s Universal P&C Fined Under the settlement terms, Universal must pay $6.5 million, which includes $2.4 million in attorney fees. Universal’s Chief Strategy Officer, Arash Soleimani, framed the settlement as a mutual decision to dismiss the case and move forward. Industry Reactions and Market Impact Gina Wilson, the Cat Fund’s chief operating officer, did not comment on the settlement. However, industry insiders acknowledged that such claim adjustments are rare but not unheard of. Universal, one of Florida’s largest property insurers, explained that post-hurricane claim assessments often evolve. “Over time, insurers gain more information about losses,” Universal stated. “Some claims initially linked to hurricanes may later be classified as unrelated, while others previously omitted may be added.” The company reassessed about 1% of its Hurricane Irma claims before and during the commutation process. The storm remains Universal’s largest single loss event, with total costs rising from an initial $450 million estimate to more than $2 billion. Universal Moves Forward With the case now closed, Universal’s CEO, Stephen Donaghy, emphasized the company’s commitment to Florida policyholders. “We are pleased this review has concluded, and the state has dismissed the case,” Donaghy said. “As market reforms take effect, we look forward to providing more affordable home insurance options for consumers.” Despite the settlement, Universal Insurance Holdings’ stock remained near a five-year high, showing minimal impact from the announcement. Stay Updated: Get the latest insurance fraud news at JacobiJournal.com Read More Related Articles: Subscribe Now! For breaking news and exclusive insights, visit JacobiJournal.com.