WHITTIER, CALIFORNIA — A major insurance fraud investigation in Southern California has led to the arrest of a local towing company owner accused of orchestrating a scheme that allegedly cost insurance carriers nearly $6 million.
Authorities say the case centers around Hadley Tow, a Whittier-based towing business whose owner, Mark Hassan, was taken into custody along with his brother in connection with the alleged fraud operation. The arrests come after investigators conducted a forensic review of payroll records and insurance filings connected to multiple towing companies in the Los Angeles area.
Towing Company Owner and Brother Arrested
Mark Hassan, owner of Hadley Tow, was arrested on March 11 alongside his brother Ahmed Hassan, who operates California Heights Tow in Walnut. According to investigators, both men now face multiple felony counts tied to insurance fraud allegations involving their businesses.
Authorities say the case is being prosecuted by the Los Angeles County District Attorney’s Office following a detailed investigation into payroll reporting and workers’ compensation filings. After the arrests, Mark Hassan was booked into the Los Angeles County Sheriff’s Department Inmate Reception Center, while Ahmed Hassan was booked at the West Valley Detention Center.
Investigators Say Payroll Numbers Were Dramatically Underreported
Prosecutors allege the brothers underreported employee payroll to workers’ compensation insurance carriers in order to reduce the premiums their companies were required to pay. Investigators say some employee wages were allegedly paid in cash, allowing the companies to hide the true scale of their payroll operations.
Authorities further allege that Mark Hassan used a separate entity known as Courtesy Tow as a shell company to conceal the actual payroll numbers associated with Hadley Tow. This alleged system, investigators claim, allowed the businesses to significantly understate their workforce expenses while still operating at a much larger scale.
Forensic Audit Revealed Major Financial Discrepancies
The investigation intensified after a forensic audit examined payroll records submitted to insurers. According to investigators, the two companies reported a combined payroll of approximately $3 million to their insurance carriers.
However, the audit allegedly revealed that the true payroll figure was closer to $16.7 million. Authorities say that discrepancy resulted in insurance carriers being shortchanged by nearly $6 million in unpaid premiums. The findings also triggered a separate tax evasion investigation tied to unpaid payroll withholding taxes.
Past Controversies Involving the Towing Company
Hadley Tow has previously been involved in disputes within the Whittier community.
Roughly a decade ago, Whittier Police asked the City Council not to renew the company’s municipal towing contract, citing concerns that included alleged failures to preserve evidence after fatal traffic collisions, customer complaints, and disputes with competing towing companies.
Despite those concerns, the City Council voted to keep the company operating under its contract at the time. Local officials then suggested the issues might have been caused by a small number of problematic employees rather than company leadership.
Case Now Moves Forward in Los Angeles County
With the arrests now completed, the case will move forward through the Los Angeles County court system. Prosecutors will determine how the charges proceed as investigators continue reviewing financial records and other evidence related to the alleged fraud scheme.
Cases involving workers’ compensation fraud can carry significant penalties if proven in court, particularly when large financial losses are alleged. As the investigation continues, the arrests have drawn renewed attention to oversight of towing operations and insurance reporting across Southern California. For more breaking stories and updates, visit GordonRamsayClub.com.
Leave a Reply