DOL Pension Fraud Probe Yields California Company’s Conviction

A federal agency investigation and lawsuit targeting an agricultural contracting company and its top executives resulted in convictions from a California jury for pension, workers’ compensation, and health insurance-related fraud.

The American Labor Alliance’s schemes to defraud workers and customers involved misrepresentations that the employer would invest retirement savings in a 401(k), which was instead used to pay business and personal expenses, including for one executive’s Frenso, Calif. lake house, the jury in the US District Court for the Eastern District of California found Tuesday.

That pension fraud caused more than $750,000 in losses, which the company covered up ...