FRESNO, Calif. – Two Fresno men, Marcus Asay, 68, and Antonio Gastelum, 53, along with their company, Agricultural Contracting Services Association dba American Labor Alliance (ALA), are facing serious time after a jury found them guilty Tuesday of a brazen multi-year fraud scheme. The verdict followed a grueling 19-day trial, and U.S. Attorney Phillip A. Talbert is promising a full accounting for the victims.
The jury didn’t stop at the pension scheme. Asay and ALA were also convicted of separate workers’ compensation and hardship exemption frauds. The hardship scam preyed on vulnerable citizens, falsely promising relief from Affordable Care Act penalties for a fee – a service freely provided by the government. But the real damage came from the pension and workers’ comp schemes, leaving over 3,000 people robbed of their future and businesses crippled by false assurances.
Court documents paint a picture of systematic deception. From 2011 through 2019, Asay, as founder and chairman of ALA, and Gastelum, the company’s Chief Operating Officer, Chief Financial Officer, and Compliance Officer (and former city manager for Parlier), peddled sham retirement plans, workers’ compensation coverage, and hardship exemptions. The pension fraud alone saw the defendants siphoning over $750,000 from the retirement funds of more than 3,000 people, funneling the money into lavish personal expenses. Think restaurants, travel, rare coins, even a lakefront house in Fresno. When the money ran dry, they allegedly used funds from the workers’ compensation fraud to *pretend* the pension funds were still intact – a pathetic attempt to cover their tracks.
The workers’ compensation fraud was equally audacious. Asay and ALA falsely claimed national insurers backed their coverage, listing those insurers on official-looking documents sent to customers. This allowed clients to falsely assure *their* customers and regulators that they had legitimate workers’ comp, enabling them to continue operating. When federal investigators started sniffing around, the defendants allegedly tried to silence victims, sending letters urging them not to cooperate with authorities. The total loss from this scheme topped $2,250,000.
The investigation, a collaborative effort from the U.S. Department of Labor, the FBI, the IRS Criminal Investigation, and the Social Security Administration Office of Inspector General, revealed a pattern of greed and disregard for the financial security of hardworking Americans. Assistant U.S. Attorneys Michael Tierney, Joseph Barton, and Stephanie Stokman meticulously built the case, presenting damning evidence that sealed the defendants’ fate. The government proved that the hardship exemption scheme was a simple cash grab, charging hundreds of dollars for a free service.
Sentencing is scheduled for October 21, 2024, before U.S. District Judge Dale A. Drozd. Asay and Gastelum each face up to 20 years in prison per count, along with hefty fines ranging from $250,000 to $500,000 per count. ALA itself could be hit with a staggering $8.5 million fine. While the actual sentences remain to be seen, one thing is certain: these Fresno executives will be held accountable for their callous and calculated crimes. Grimy Times will be in the courtroom when sentencing occurs.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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