Last Updated on March 11, 2026 by The HD Post Staff
CALIFORNIA – Brothers and towing company owners Mark Hassan, 46, of Corona del Mar, and Ahmed Hassan, 35, of Walnut, were arrested March 11 on multiple felony insurance fraud charges.
Prosecutors allege they underreported employee payroll and paid workers partly in cash to avoid nearly $6 million in workers’ compensation insurance premiums.
The California Department of Insurance (CDI) launched an investigation after receiving two fraud referrals from an insurer alleging that Mark Hassan, owner of Hadley Tow, underreported his company’s payroll.
The investigation expanded after a third fraud referral alleged Ahmed Hassan, owner of California Heights Tow, filed a fraudulent injury claim for a Hadley Tow employee.
Mark Hassan, also the owner of FMG Inc., operated Hadley Tow in Whittier, Courtesy Tow in Sylmar, Crescenta Valley Tow in La Crescenta, and California Coach Towing in Walnut, along with several other towing companies across the greater Los Angeles area.
He also held towing contracts with several Southern California law enforcement agencies.
Estimated $5,897,487 in lost insurance premiums
During the investigation, detectives learned Mark Hassan used his uninsured towing company, Courtesy Tow, as a “shell company.”
Authorities allege it was used to conceal portions of Hadley Tow’s payroll and defraud workers’ compensation insurers of premiums owed.
Ahmed Hassan also underreported employee wages in an attempt to lower his company’s workers’ compensation insurance premiums.
In addition to hiding and misrepresenting employee wages to workers’ compensation insurers, the Hassan brothers allegedly paid portions or all of employees’ wages without withholding standard deductions.
The practice led the Employment Development Department to open a payroll tax evasion investigation.
The brothers reported a combined payroll of $3,038,164 for Hadley Tow and California Heights Tow to their insurance carriers, but a forensic audit found the actual payroll was $16,716,657.
The scheme resulted in an estimated $5,897,487 in lost insurance premiums.
Underreporting workers’ compensation insurance is illegal
CDI says underreporting workers’ compensation insurance is illegal, shifts costs to other policyholders, and harms injured workers. The department investigates insurance fraud to protect consumers.
Mark Hassan was booked at the Los Angeles County Sheriff’s Inmate Reception Center, and Ahmed Hassan was booked at West Valley Detention Center in Rancho Cucamonga.
The Los Angeles County District Attorney’s Office is prosecuting the case.
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