April 15, 2025 | JacobiJournal.com – LA Couple Sentenced: John Nemandoust, 70, and Annette Assil, 62, were sentenced after an investigation uncovered their scheme to underreport over $21 million in payroll and submit false workers’ compensation claims. Nemandoust will serve 60 days in county jail, while Assil will serve 30 days. Both face 10 years of felony probation and must pay $2.2 million in restitution for unpaid workers’ compensation premiums.
The LA couple sentenced in this case drew significant attention from state regulators because of the scale of the fraud and the direct impact on California’s workers’ compensation system. Authorities emphasized that the outcome reinforces how aggressively prosecutors are pursuing employers who attempt to evade insurance requirements through underreporting or false claims.
Investigation Reveals Extensive Underreporting
The California Department of Insurance (CDI) initiated the investigation into the couple’s three businesses: A-1 Valley Services, Prompt Delivery, and Affordable Messenger. From 2013 to 2017, the couple failed to secure workers’ compensation coverage for two of the companies. Only A-1 Valley Services had insurance, leaving Prompt Delivery and Affordable Messenger uninsured.
The couple sentenced for these violations not only underreported payroll but also left employees vulnerable by operating without proper coverage. Investigators noted that uninsured operations put both workers and legitimate businesses at risk, since fraud of this scale shifts costs onto honest employers and weakens the integrity of the workers’ compensation system.
Filing False Claims to Evade Payments
When employees from the uninsured companies were injured, the couple allegedly filed false claims under the A-1 Valley Services policy. Investigators discovered that the couple misreported $25 million in payroll, only reporting $1.4 million to their insurance carrier. This allowed them to avoid paying $3 million in premiums.
The couple sentenced in this case used fraudulent claims not just to sidestep premium payments, but also to conceal the true scale of their business operations. Prosecutors stressed that these actions undermined the workers’ compensation system, creating unfair advantages over law-abiding employers and placing legitimate insurance carriers at financial risk.
Court’s Ruling and Sentence
The Los Angeles County District Attorney’s Office prosecuted the case. Nemandoust and Assil will serve their sentences and face continued supervision under probation.
Source: California Department of Insurance – CDI Press Release
FAQs: LA Couple Sentenced Workers Comp Fraud
What were the charges in the LA couple sentenced workers comp fraud case?
They were convicted of underreporting $21 million in payroll and filing false workers’ comp claims to avoid $3 million in premiums.
How much restitution was ordered in the LA couple sentenced workers comp fraud case?
The court ordered $2.2 million in restitution for unpaid workers’ compensation premiums as part of the sentencing.
Why is the LA couple sentenced workers comp fraud case significant?
It highlights how California authorities, including CDI and local prosecutors, pursue large-scale fraud schemes to protect workers and ensure fair premium payments.
What penalties did the face beyond restitution?
In addition to paying $2.2 million in restitution, the couple sentenced received county jail time and 10 years of felony probation, ensuring long-term oversight of their activities.
How does the case impact other California employers?
The couple sentenced case serves as a warning to other business owners that underreporting payroll or filing false claims can lead to severe legal consequences, including jail, probation, and financial penalties.
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