Michele Beckwith Acting U.S. Attorney | U.S. Attorney for the Eastern District of California
Fresno residents Marcus Asay, 69, and Antonio Gastelum, 53, have been sentenced to prison for their roles in a fraudulent pension scheme. U.S. District Judge Dale A. Drozd handed down a five-year sentence for Asay and a two-year sentence for Gastelum. Acting U.S. Attorney Michele Beckwith announced the sentencing following their conviction for pension fraud through their business, Agricultural Contracting Services Association, doing business as American Labor Alliance (ALA).
The company ALA has been fined $2.5 million. Both Asay and ALA were also ordered to pay $69,250 in restitution. Asay, Gastelum, and ALA were convicted on June 18, 2024, after a jury trial lasting five weeks. The charges included pension fraud, worker’s compensation fraud, hardship exemption fraud, and money laundering.
Court documents revealed that Asay, the founder and chairman of ALA, used funds intended for retirement investments for personal expenses. The sham products offered by ALA deceived over 3,000 people from 2011 to 2019. The pension fraud scheme resulted in losses exceeding $620,000.
The worker’s compensation fraud involved falsely claiming that the coverage provided by ALA was backed by national insurers, generating $2.25 million in premiums. Furthermore, the hardship exemption fraud falsely assured customers that ALA could provide exemptions from the Affordable Care Act’s health insurance mandate for a fee, though they were only available through government agencies for free.
Asay’s money laundering conviction was connected to the movement of pension funds through various accounts. Enhanced sentences were given to Asay and Gastelum due to perjured testimonies during the trial.
The case was investigated by several agencies, including the U.S. Department of Labor, Federal Bureau of Investigation, IRS Criminal Investigation, and Social Security Administration. The legal proceedings were led by Assistant U.S. Attorneys Michael Tierney, Joseph Barton, and Stephanie Stokman.
