View this article online: https://www.insurancejournal.com/news/southcentral/2011/08/25/212356.htm
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.