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
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