Two brothers, who own a number of towing companies across Southern California, were arrested after being accused of lying about employee payroll and defrauding insurance companies out of nearly $6 million of insurance premiums, state authorities announced Wednesday.
The California Department of Insurance said Mark Hassan, 46, of Corona Del Mar and Ahmed Hassan, 35, of Walnut, underreported employee payroll by paying their workers under the table, thus paying lower workers’ compensation insurance premiums.
The investigations were launched against the brothers after the Insurance Department received three fraud referrals, prompting officials to examine several companies owned by the brothers, including Hadley Tow in Whittier and California Heights Tow in Walnut.
In all, the Hassan brothers reported a total payroll of $3 million to their insurance companies, but an audit showed their…
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