The FBI is seeking out businesses that may have been victims of an alleged nationwide workers’ comp insurance, health care insurance and pension plan fraud scheme. Businesses that bought policies from American Labor Alliance or one of its subsidiaries are urged to contact their state insurance regulator to ensure the validity of their policies.
Potential victims should also call 1-800-CALL-FBI or email [email protected]. On January 10, 2019, American Labor Alliance and two executives were charged with conspiracy to commit mail fraud, mail fraud, and money laundering. It is alleged that ALA and its subsidiaries sold workers’ compensation coverage that actually offered no coverage.
The company is also accused of offering a retirement pension plan that may also be invalid. The plan was referred to as several names, including ALA Trust, ALA Retirement Plan and Trust, and ALA Retirement Plan Trust. American Labor Alliance fraudulently marketed itself as a special type of labor organization under federal law. It also advertised that customers could join ALA and obtain financial services.
The charges mentioned above are only allegations. At this point in time, the defendants are innocent until proven guilty beyond a reasonable doubt in a court of law. Additional details have been made available here.