Ousama Karawia: Former security company owner convicted in Workers Comp fraud

LOS ANGELES – The former owner of a security company that employed 2,700 workers statewide was convicted today of defrauding the state in an elaborate workers comp fraud scheme, the District Attorney’s office announced.

A jury deliberated three days before finding Ousama Karawia, the former owner and president of International Protective Services Inc. and a reserve L.A. County Sheriff’s Deputy, guilty of seven felony counts, including grand theft of labor, two counts of insurance fraud and four counts of illegal possession of assault weapons, said Deputy District Attorney Anthony Colannino who prosecuted the case for the Healthcare Fraud Division.

The jury also found Allan Terrill Bailey, the company’s vice president for quality assurance, guilty of four counts of failure to file tax returns and one count of illegal possession of an assault weapon.

Karawia’s company provided security for firms and government agencies around the country, including the downtown Los Angeles County Courthouse and the Statute of Liberty in New York.

Prosecutors argued that Karawia, 48, and Bailey, 43, conspired to hide the true number of IPS employees by creating a shell company, International Armored Solutions Inc., in order to avoid paying higher workers compensation insurance premiums to the State Compensation Insurance Fund.

Karawia told state officials he only employed about 35 workers at the new company, IAS, and that it was not part of his other company. The State Compensation Insurance Fund alleged the fraud cost California more than $10.1 million in lost workers comp premiums, Colannino said.

Karawia was arrested at his Brentwood home on April 15, 2009, following a three-month investigation by the D.A.’s Bureau of Investigation.

Both men return to court Feb. 20 for sentencing before Superior Court Judge Sam Ohta. Karawia is facing up to 10 years in county jail. Bailey is facing up to six years in county jail.

Amazon Fire TV Stick 4K (newest model) with AI-powered Fire TV Search, Wi-Fi 6, stream over 1.5 million movies and shows, free & live TV

(65855)

$29.99 (as of May 8, 2025 06:29 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Sparkling Ice, Black Raspberry Sparkling Water, Zero Sugar Flavored Water, with Vitamins and Antioxidants, Low Calorie Beverage, 17 fl oz Bottles (Pack of 12)

(102452)

$10.98 (as of May 8, 2025 06:29 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Amazon Echo Dot (newest model), Vibrant sounding Alexa speaker, Great for bedrooms, dining rooms and offices, Charcoal

(155327)

$37.99 (as of May 8, 2025 06:29 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Rain-X 820147 WeatherBeater, 26" and 16" Windshield Wiper Blades - All-Season OEM Quality, Conventional, Vehicle Specific Fit, Pack of 2

(61264)

$25.99 (as of May 8, 2025 06:29 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

20x50 High Powered Binoculars for Adults, Waterproof Compact Binoculars with Low Light Vision for Bird Watching Hunting Football Games Travel Stargazing Cruise with Carrying Bag

(1805)

$35.98 (as of May 8, 2025 06:29 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Stanley Quencher ProTour Flip Straw Tumbler with Leakproof Lid 30 oz | Built-In Straw & Handle | Cupholder Compatible for Travel | Insulated Stainless Steel Cup | BPA-Free | Rose Quartz

(2447)

$35.00 (as of May 8, 2025 06:29 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

MWIRB AI Translation Earbuds Real Time, 144 Language Translator Earbuds for iPhone and Android 3-in-1 Translation Headphones Translating Device for Travel Business Learning with Charging Case(Black)

(366)

$39.99 (as of May 8, 2025 17:25 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Ninja Woodfire ProXL Outdoor Grill & Smoker, Thermometer, 4-in-1 Master Grill, BBQ Smoker, Outdoor Air Fryer, Bake, Portable, Electric Grill (Renewed) (Hunter Green)

(2)

$229.99 (as of May 8, 2025 17:25 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Acer TravelMate TMB118-M-C80T Intel Celeron N4000 2 Core @ 1.10GHz 4GB 64GB eMMC, Windows 10 Pro (Renewed)

(10)

$89.99 (as of May 8, 2025 17:25 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

ZAGKOO Mother's Day Gifts - Mom Gifts from Daughter Son Husband for Birthday Christmas - Best Mom Ever Gift Ideas for Mothers, Wife, Granny, Mothers in Law, Moms To Be - Funny Moms White Tumbler 20 Oz

(3)

$21.95 (as of May 8, 2025 17:25 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)