A Travis County, Texas grand jury has indicted Mark Edward Helm and McClanahan Drywall Inc., of Emory, Texas, on workers’ compensation fraud-related charges.
Helm was an officer of McClanahan Drywall Inc. and obtained workers’ comp coverage through Texas Mutual Insurance Co. from Feb. 14, 2008, to June 7, 2009.
Texas Mutual alleges that during the periods of coverage Helm misrepresented the number of employees and payroll associated with the company by falsely representing contract laborers as subcontractors.
Because workers’ comp 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. By hiding payroll an employer can gain an unfair advantage over competitors. A grand jury indictment is a formal accusation, not a conviction, of criminal conduct.
Austin-based Texas Mutual is a large provider of workers’ comp insurance, with reportedly 38 percent of the market. The company maintains three teams of in-house fraud investigators.
Topics Texas Fraud Workers' Compensation
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