Southland agent charged in alleged scheme targeting injured workers’ benefit funds
News: 2017 Press Release
LONG BEACH, Calif. - Tom Fallon, 63, of Long Beach, is being arraigned Monday, July 24 in Superior Court in Long Beach on multiple felony charges including theft by embezzlement and money laundering. Fallon's daughter, Christina Fallon, 28, also of Long Beach, is scheduled to surrender herself at the Long Beach Police Department on Monday, July 24 and is facing the same felony charges.
According to investigators with the California Department of Insurance Investigation Division, Tom Fallon and his daughter allegedly embezzled $273,954 from injured workers who trusted him to invest settlement funds from workplace accidents with his company Fortis Financial Insurance Services, Inc., and then diverted their funds to his own accounts for his personal use.
"The Fallons' alleged theft from injured workers is particularly egregious," said Insurance Commissioner Dave Jones. "By stealing from injured workers who depend on the funds for future care, the Fallons may have left many victims without the resources they need for medical treatment."
Evidence revealed Tom Fallon suggested two victims who received a $273,974 settlement from a work-related traffic collision deposit their accident settlement funds with him in what's known as a Workers' Compensation Set Aside Arrangement, which would provide investment management for their settlement.
In December 2014, the victims received an interest payment check from Tom Fallon that bounced for non-sufficient funds, which raised their suspicions that something was wrong. The victims filed a request for assistance with the California Department of Insurance Consumer Services Division, which led to a criminal investigation that uncovered the alleged crime and revealed Fallon embezzled over $250,000 from the victims and used the funds for his personal expenses and business ventures, including Big Daddy's Cigar lounge in Naples.
The Los Angeles County District Attorney's Office filed a criminal complaint against Tom and Christina Fallon on July 14, 2017, charging two counts of Theft by Embezzlement PC 504 and 487(a), and 15 counts of Money Laundering PC 186.10 including PC 186.11(a) (3) white collar crime enhancements. If convicted of all charges, the defendants face a maximum sentence of more than 16 years in state prison.
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- Photo of Christina Fallon. Booking photo no yet available.
- Tom Fallon and daughter, Christina, allegedly spent some of the victim's funds to open Big Daddy's Cigars, located at 5844 E Naples Plaza, Long Beach, CA 90803.
- Investigators with the Department of Insurance will personally serve Fallon with an order for immediate suspension of his agent license and will take additional appropriate action upon the outcome of the criminal case.
- 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.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.