The Brief<\/p>\n
Brothers Mark and Ahmed Hassan were arrested for allegedly defrauding workers\u2019 compensation insurers of nearly $6 million in premiums.<\/p>\n
The scheme involved underreporting payroll by over $13 million and using “shell companies” to hide employee wages and avoid tax withholdings.<\/p>\n
The investigation has now expanded into a payroll tax evasion case involving the Employment Development Department.<\/p>\n
LOS ANGELES – Two Southern California<\/a> towing company owners are facing multiple felony counts of insurance fraud following a massive investigation into premium theft.<\/p>\n Authorities allege the brothers systematically underreported employee wages to avoid paying millions of dollars in required workers’ compensation insurance.<\/p>\n What we know<\/p>\n Mark Hassan, 46, and Ahmed Hassan, 35, were arrested after a California Department of Insurance investigation revealed they reported only $3 million in payroll when the actual figure was over $16.7 million.<\/p>\n Mark Hassan allegedly used an uninsured “shell company,” Courtesy Tow, to conceal the earnings of employees from his primary business, Hadley Tow.<\/p>\n The investigation further suggests the brothers paid employees in cash and failed to withhold standard deductions.<\/p>\n Mark Hassan, who operated numerous towing businesses across Los Angeles<\/a>\u2014including Hadley Tow, Courtesy Tow, and California Coach Towing\u2014held active contracts with several Southern California law enforcement agencies at the time of his arrest.<\/p>\n What we don’t know<\/p>\n It is currently unclear how long the alleged scheme had been in operation before the first fraud referrals were made.<\/p>\n