FRESNO, Calif. — A 19-day trial culminated in the conviction of Fresno residents Marcus Asay, 68, and Antonio Gastelum, 53, as well as their company, Agricultural Contracting Services Association dba American Labor Alliance (ALA), for a multi-year pension fraud scheme that siphoned over $750,000 from unsuspecting investors.
Asay and ALA were charged with separate workers’ compensation and hardship exemption fraud schemes. The hardship exemption fraud involved falsely promising exemptions from the Affordable Care Act’s health insurance mandate, while Asay personally laundered funds from the pension scheme, utilizing them for personal expenses such as dining out, travel, and online companion services.
The trio, led by Asay as founder and chairman of ALA, also defrauded customers in workers’ compensation fraud by falsely claiming national insurers backed their coverage. This deception resulted in a loss exceeding $2,250,000. The jury found them guilty of these schemes, along with presenting false hardship exemptions.
This case is a result of an extensive investigation involving multiple federal agencies including the U.S. Department of Labor’s Employee Benefits Security Administration and Office of Labor-Management Standards, the FBI, IRS Criminal Investigation, and the Social Security Administration Office of Inspector General.
Asay and Gastelum are scheduled for sentencing on Oct. 21, 2024, with potential sentences up to 20 years each on fraud counts and fines ranging from $250,000 to $500,000 per count. ALA faces a fine of up to $8.5 million.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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