Insurance agent Tom Fallon, 63, was arraigned July 24 in Superior Court in Long Beach, Calif., on multiple felony charges including theft by embezzlement and money laundering.
Fallon's daughter, Christina Fallon, 28, is scheduled to surrender herself at the Long Beach Police Department on July 24, and is facing the same felony charges.
According to investigators with the California Department of Insurance Investigation Division, Fallon and his daughter allegedly embezzled $273,954 for their personal use from injured workers who trusted them to invest settlement funds from workplace accidents with his company, Fortis Financial Insurance Services Inc.
Evidence revealed Tom suggested two victims deposit their accident settlement funds with him in what's known as a workers' compensation set-aside arrangement, which would provide investment management for their settlement. In December 2014, the victims received an interest payment check from Tom Fallon that bounced for nonsufficient funds, which raised their suspicions that something was wrong, ultimately leading to a criminal investigation into the Fallon family.
"The Fallons' alleged theft from injured workers is particularly egregious," said Insurance Commissioner Dave Jones. "By stealing from injured workers who depend on the funds for future care, the Fallons may have left many victims without the resources they need for medical treatment."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Denny Jacob
Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected].
