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
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