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Long Beach Father and Daughter Charged with Embezzlement and Money Laundering

Long Beach Father and Daughter Charged with Embezzlement and Money Laundering

LONG BEACH – A father-daughter team have been charged in an alleged scheme targeting injured workers’ benefit funds California Department of Insurance officials said. Long Beach resident, Tom Fallon, 63, is set to be arraigned at the Long Beach superior court on Monday and is facing multiple felony charges as a result of his alleged embezzlement of nearly $274,000.

According to the California Department of Insurance investigation, Tom Fallon and his 28-year-old daughter, Christina Fallon, also of Long Beach offered to invest settlement funds from a work-related traffic accident which belonged to injured workers. The account was an accident settlement account, known as a Worker’s Compensation Set Aside Arrangement. The victims trusted the company, Fortis Financial Insurance Services, Inc. with the investment management of the two victim’s $273,974 settlement. Fallon then allegedly diverted the funds into his own accounts for personal use, including personal expenses and a business venture, ‘Big Daddy’s Cigar Lounge‘ in Naples.

“The Fallon’s 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 Fallon’s may have left many victims without the resources they need for medical treatment.” The victims became suspicious that something was wrong when in 2014, the victims received an interest payment check from Tom Fallon that bounced due to non-sufficient funds. The victims filed a request for assistance with the California Department of Insurance Consumer Services Division, which led to the criminal investigation.  Tom Fallon is scheduled for arraignment at the Long Beach Superior Court on Monday, July 24th, which is the same day Christina Fallon is scheduled to surrender herself to the Long Beach Police Department.

The Los Angeles County District Attorney’s Office filed a criminal complaint against Tom and Christina Fallon on July 14, 2017, charging two counts of Theft by Embezzlement PC 504 and 487(a), and 15 counts of Money Laundering PC 186.10 including PC 186.11(a) (3) white collar crime enhancements. If convicted of all charges, the defendants face a maximum sentence of more than 16 years in state prison.

 

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Staff Writer

This article was written by a staff member of the 24/7 Headline News Organization

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