April 9, 2025 | JacobiJournal.com — 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.
This ruling underscores how seriously California regulators and prosecutors are cracking down on payroll fraud in the delivery and logistics sector. By deliberately misclassifying payroll and concealing true employee numbers, the defendants were able to gain an unfair advantage over compliant businesses while exposing their workers to significant risk.
The decision comes amid a broader state and national push to hold business owners accountable for misreporting payroll and avoiding legally mandated insurance obligations. With the restitution amount exceeding $2.25 million, the case highlights the real financial impact of enforcement actions and sends a message to other companies considering similar misconduct.
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
For official details, see the California Department of Insurance report: California Department of Insurance – News Releases.
FAQs: LA Delivery Owners
Why were the LA delivery owners ordered to pay $2.25M in restitution?
They underreported more than $21 million in payroll to avoid workers’ compensation insurance premiums, leading to their sentencing and restitution order.
What penalties did the LA delivery owners face besides restitution?
John Nemandoust received 60 days in jail, Annette Assil received 30 days, and both were sentenced to 10 years of felony probation.
How did investigators uncover the fraud involving the LA delivery owners?
A forensic audit by the California Department of Insurance revealed the misreported payroll and fraudulent use of one company’s insurance policy for claims.
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