A California monetary advisor was sentenced to 10 years and 4 months in state jail and ordered to pay restitution of practically $1 million for embezzling cash from his shoppers.
Tom Fallon, 65, was convicted of 25 felony counts of cash laundering and grand theft stemming from a scheme to take cash from his shoppers' employees' compensation settlement checks. As required by regulation, the checks are to be deposited into Staff' Compensation Medicare Set Apart Accounts, which allocate a portion of employees’ comp settlements to pay for future medical providers associated to a employee damage, sickness or illness. These funds have to be depleted earlier than Medicare can pay for therapy.
Based on the Insurance coverage Journal, Fallon had his shoppers deposit their checks in accounts with firms he owns, Fortis Monetary Insurance coverage Providers Inc. and Legacy Group Monetary, so he may embezzle $995,118 for his private acquire and to fund varied different companies. Based on investigators, no WCMSA accounts had been ever created at these corporations.
The California Division of Insurance coverage carried out a yearlong investigation into Fallon's crime. His license was suspended on the day of his arrest, July 19, 2017.
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