The FBI is seeking Minnesota businesses that may be victims of an alleged nationwide workers' compensation insurance, health care insurance, and pension plan fraud scheme based in California.
Businesses that purchased policies from American Labor Alliance (ALA) or one of its subsidiaries nationwide should contact their state insurance regulator to ensure the validity of their policies. Also, if business owners suspect they have been a victim of this alleged fraud, they are asked to call 1-800-CALL-FBI or send an email to WCVictims@fbi.gov.
According to Kevin W. Smith, public affairs officer in the FBI’s Minneapolis office, in January, ALA and two of its executives were charged with mail fraud, conspiracy to commit mail fraud, and money laundering by a 14-count federal grand jury indictment. Court documents allege ALA and its subsidiaries sold what was purported to be workers' compensation coverage that, actually, may offer no coverage. From at least 2011 onward, ALA offered a retirement plan to its clients, known by a variety of names including "ALA Trust," the "ALA Retirement Plan Trust," or the "ALA Retirement Plan and Trust," that may also be invalid.
According to court documents, ALA and its affiliates allegedly offered a broad range of financial services to potential clients, including tax preparation and drafting of incorporation and other documents. It fraudulently marketed itself as a special type of labor organization, under federal law and advertised that its customers could join ALA and receive financial services.
This case is being investigated by the FBI, United States Department of Labor and and California Department of Insurance.