Texas Mutual: Woman Sentenced in Workers’ Comp Fraud Scheme

Texas Mutual Insurance Co. announced that Barbara A. Douglas of Denton pleaded no contest to felony workers’ compensation fraud-related charges.

Douglas, her father, Howard T. Douglas, III, M.D., of Hurst and their company, Western Medical Evaluators, were indicted in 2010 on charges that they overbilled Texas Mutual for the time taken to perform functional capacity evaluations.

A Travis County district court sentenced Barbara A. Douglas to 10 years’ probation and ordered her to pay $81,368 in restitution to Texas Mutual. The court also ordered Douglas to perform 125 hours of community service and to cease billing, directly or indirectly, for any medical services.

Howard Douglas previously was sentenced to 10 years’ probation and was ordered to pay $98,411 in restitution to Texas Mutual. He also must pay a $500 fine, court costs and other fees. Western Medical Evaluators was fined $1,000.

Source: Texas Mutual Insurance Co.