California financial advisor Tom Fallon, 65, has been sentenced in Long Beach Superior Court after being convicted in an open plea of 25 criminal counts of money laundering and grand theft.
Fallon was sentenced to 10 years and four months in state prison. Restitution was ordered in the amount of $995,118.
A year-long investigation by the California Department of Insurance reportedly found that Fallon convinced his victims to deposit their workers’ compensation settlement checks into Workers’ Compensation Medicare Set Aside Accounts, as required by law.
A WCMSA is a financial agreement that allocates a portion of workers’ comp settlements to pay for future medical services related to a worker injury, illness or disease. These funds must be depleted before Medicare will pay for treatment.
However, Fallon reportedly convinced his victims to deposit their settlement funds with companies he owns so he could embezzle $995,118 for his personal gain and to fund various other businesses.
Fallon worked in the same office as the victims’ attorney and urged victims to deposit their funds in a WCMSA with his companies, Fortis Financial Insurance Services Inc., and Legacy Group Financial. Evidence obtained by investigators revealed that victims’ funds were deposited into Fortis Financial & Legacy Group Financial, and that no WCMSA accounts were ever established.
Fallon’s license was suspended the day of his arrest, July 19, 2017. The Los Angeles County District Attorney’s office prosecuted the case.
Topics California Workers' Compensation
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