Fresno man accused of scamming seniors and employees

FRESNO, Calif.

Hussein Osman Ali refused to answer questions surrounding his business practices. Several employees came forward after an Action News investigation revealed Ali answered to a federal fraud charge earlier this year.

Hussein Osman Ali told Action News all of his employees have been paid and to leave his business Thursday when we confronted him as he arrived to work. But bounced check after bounced check tells a different story and frustrated employees say Ali has taken advantage of them and Medicare customers.

Latasha Banks, former employee said, "He's making all this money for whatever and he didn't pay his employees and he's taking advantage of his clients, Medicare clients."

For 19 days last month, Latasha Banks and Sarah Fradue worked at Brawley Insurance Services along with 15 others. They were hired as part of a 50/50 government program where the employer was paid half their salary to offer temporary jobs.

Banks and Fradue worked as insurance agent assistants. They were given scripts to read to potential customers offering them new Medicare policies with extra coverage. They were trained on how to answer questions and ways to recruit new business.

Banks said, "And actually what he's doing is taking retirement plans and HMO plans away from these elderly Medicare patients and trying to get I guess his bonus through Anthem, Medicare, Blue Cross however."

Ali told Action News inside his business Wednesday he does not sell the policies, but his employees say he does.

Sarah Fradue, former employee said, "Ali was selling some of those appointments, I know for a fact because a few of my appointments were sold through him and I just thought he was a liar. And this is a scam and he still need to pay me."

Fresno County representatives who connected employees with Brawley Insurance Services say all payments to the company have been stopped, in addition, the county is no longer working with Brawley Insurance and those employees who were hired and not paid are being placed at other companies.

Action News has also learned Ali pleaded guilty to a federal charge of bank fraud earlier this year.

The State Department of Managed Health Care has said Ali is no longer allowed to sell insurance plans to seniors for misrepresenting the services he offered.

Several employees have filed claims with the state labor board and are still hoping to get paid.

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