Father-Daughter Insurance Scam

Father-Daughter Insurance Scam

Christina and Tom Fallon (24/7 Headline News)

LONG BEACH — 63-year-old Tom Fallon has been charged with theft by embezzlement and money laundering.  His 28-year-old daughter Christina is expected to turn herself in today on the same charges.

The Fallons allegedly embezzled $273,954 from two workers who invested their settlement funds from workplace accidents with Fortis Financial Insurance Services, Inc.

Big Daddy’s Cigars

The elder Fallon helped to direct the money to him to be deposited in what was deemed a “Worker’s Compensation Set Aside Arrangement.”

It may have seemed all well enough, until the investors received an interest payment check from Fortis Financial in December of 2014 that bounced.

The resultant investigation led to the criminal charges.  The Fallons used some of the money to open Big Daddy’s Cigars in Naples.

The California Department of Insurance remarked, “A Workers’ Compensation Medicare Set-Aside Arrangement is a financial agreement that allocates a portion of a workers’ compensation settlement to pay for future medical services related to the workers’ compensation injury, illness, or disease. These funds must be depleted before Medicare will pay for treatment related to the workers’ compensation injury, illness, or disease. ”

 

Father-Daughter Insurance Scam was last modified: July 31st, 2017 by admin
Categories: Los Angeles