SoCal Tow Company Owners Arrested in $6M Fraud

Two Southern California towing company owners have been arrested in connection with an alleged insurance fraud scheme that investigators say cost insurers nearly $6 million in unpaid workers’ compensation premiums.

Brothers Mark Hassan, 46, of Corona del Mar, and Ahmed Hassan, 35, of Walnut, were arrested March 11 on multiple felony insurance fraud charges following a lengthy investigation by the California Department of Insurance.

Authorities allege the brothers underreported employee payroll and paid some workers in cash to avoid paying required workers’ compensation insurance premiums.

Investigators began looking into the case after insurers reported suspicious payroll figures tied to Mark Hassan’s company, Hadley Tow. The probe later expanded to include Ahmed Hassan, owner of California Heights Tow.

Detectives say Mark Hassan also operated several other towing companies across the Los Angeles area and used one uninsured business, Courtesy Tow, as a shell company to conceal payroll.

A forensic audit found the companies reported about $3 million in payroll, while the actual payroll exceeded $16 million.

Prosecutors estimate the scheme resulted in nearly $5.9 million in unpaid insurance premiums. Source: https://www.newsbreak.com