Marcus Asay, 69, founder and chairman of the American Labor Alliance, was sentenced to five years in prison, and Antonio Gastelum, 53, the organization’s Chief Operating Officer, Chief Financial Officer, and Compliance Officer, received a two-year sentence. The sentencing took place earlier this week and follows their conviction on June 18, 2024, for involvement in multiple fraud schemes, according to the U.S. Attorney's Office.
A federal judge fined American Labor Alliance $2.5 million and ordered both the organization and its leader, Asay, to pay $69,250 in restitution. The case involved three fraudulent products offered over nearly ten years: false retirement plans, worker’s compensation coverage, and hardship exemptions claiming relief from Affordable Care Act requirements. The largest scheme involved a fake 401(k) plan that misled over 3,000 people. Instead of being invested, the funds were used for personal expenses and to cover up losses from other fraudulent operations, as reported by the U.S. Attorney's Office.
Asay, Gastelum, and American Labor Alliance were involved in a scheme that misled customers about worker’s compensation coverage by issuing fake insurance certificates, collecting $2.25 million in premiums. They also attempted to issue hardship exemptions, which only the government can legally grant and must be provided for free. Both Asay and Gastelum received additional penalties for committing perjury during their trial. The case was investigated by the U.S. Department of Labor, the Federal Bureau of Investigation, IRS Criminal Investigation, and the Social Security Administration’s Office of Inspector General. It was prosecuted by Assistant U.S. Attorneys Michael Tierney, Joseph Barton, and Stephanie Stokman, as stated by the U.S. Attorney's Office.
