Company Ordered to Pay $300K to Texas Mutual Insurance

August 25, 2011

Texas Mutual Insurance Co. reported that Bar H Concrete Inc. of Sulphur Springs pleaded guilty to workers’ compensation fraud-related charges. A Travis County district court ordered Bar H Concrete to pay $300,000 in restitution to Texas Mutual.

Texas Mutual provided workers’ compensation coverage to Bar H Concrete, owned by Charles Rick Henderson and John Herbert Heilman of Sulphur Springs, from Jan. 11, 2005, to Jan. 11, 2009. During that time, Bar H Concrete concealed payroll through a related company that was not disclosed to Texas Mutual.

Because workers’ compensation insurance premium is based, in part, on payroll, this type of scheme results in an employer being charged a lower premium than it actually owes.

Source: Texas Mutual Insurance Co.

 

 

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Latest Comments

  • August 29, 2011 at 5:24 pm
    Longtime Agent says:
    In this case, restitution was the order. Texas Mutual has been known to put people in prison for claims fraud. They are very aggressive when they find that someone is rippin... read more
  • August 29, 2011 at 2:05 pm
    Texas Mutual Client says:
    Only restitution? Wasn't there more of a punishment than that?
  • August 25, 2011 at 2:19 pm
    Longtime Agent says:
    Texas Mutual is pretty good at catching people that try to defraud them. They are really aggessive on the Employment agencies who try to conceal payroll.
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