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:
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