Owners of one of the largest towing businesses in Southern California arrested in nearly 6 million dollar fraud scheme
News: 2026 Press Release
LOS ANGELES, — Brothers and tow company owners, Mark Hassan, 46, of Corona Del Mar, and Ahmed Hassan, 35 of Walnut, were arrested today on multiple counts of felony insurance fraud after allegedly underreporting employee payroll and paying portions of employees’ wages in cash to defraud workers’ compensation insurance companies out of nearly 6 million dollars of insurance premiums.
The California Department of Insurance launched an investigation after receiving two fraud referrals from an insurance company alleging that Mark Hassan, owner of Hadley Tow, underreported his company’s payroll. The Department’s investigation expanded when it received a third fraud referral alleging his brother Ahmed Hassan, owner of California Heights Tow, filed a fraudulent employee injury claim against his insurance policy for a Hadley Tow employee.
Mark Hassen, also the owner of FMG Inc., was doing business as Hadley Tow based in Whittier, Courtesy Tow based in Sylmar, Crescenta Valley Tow based in La Crescenta, California Coach Towing based in Walnut, and several other tow companies across the greater Los Angeles area. He also held towing contracts with multiple law enforcement agencies throughout Southern California.
During the investigation, detectives learned Mark Hassan used his uninsured tow company, Courtesy Tow, as a “shell company” to conceal portions of Hadley Tow employee payroll to allegedly defraud workers’ compensation carriers of premiums they were owed. Ahmed Hassan, in an attempt to lower his company’s workers’ compensation insurance premiums also underreported employee wages.
In addition to hiding and misrepresenting employee wages to their workers’ compensation insurance providers, the Hassan brothers paid portions or all of employee wages without withholding standard deductions, which led to Employment Development Department opening a payroll tax evasion investigation.
For both Hadley Tow and California Heights Tow the brothers reported a combined payroll of $3,038,164 to their insurance carriers, but a forensic audit revealed the actual combined payroll for the two companies was $16,716,657. The illegal actions resulted in an estimated premium loss of $5,897,487.
Underreporting of workers' compensation insurance in California is illegal and undermines the financial stability of the insurance system, which shifts costs onto other policyholders. It also jeopardizes the availability of benefits for injured workers, hindering their access to necessary support. Unfair competition also arises as fraudulent businesses gain an advantage over ethical ones. Experts at the Department of Insurance are dedicated to protecting consumers by rigorously investigating cases of alleged illegal acts by insurance companies and individuals.
Mark Hassan was booked at the Los Angeles County Sheriff - Inmate Reception Center, and Ahmed Hassan was booked at the West Valley Detention Center in Rancho Cucamonga. This case is being prosecuted by the Los Angeles District Attorney’s Office.
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Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
