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…