Texas Man Pleads Guilty to Workers’ Comp Fraud; Ordered to Repay $806K

March 12, 2014

Texas Mutual Insurance Co. reported that Howard Douglas Whiddon of Dripping Springs pleaded guilty to workers’ compensation fraud-related charges in a Travis County district court. The court sentenced Whiddon to 10 years’ deferred adjudication and 160 hours of community service, and ordered him to pay $806,020 in restitution to Texas Mutual.

Whiddon and his Austin-based company, Whiddon Masonry & Stucco Inc., were indicted in March 2011. The indictment alleged that between Nov. 9, 2004, and Jan. 30, 2008, Whiddon intentionally misrepresented the operations and payroll of a related company, Veranda Masonry Inc.

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. By hiding payroll, an employer can gain an unfair advantage over competitors.

Source: Texas Mutual Insurance Co.

 

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Latest Comments

  • March 13, 2014 at 2:36 pm
    Safetyguy says:
    If memory serves, Texas is a voluntary WC state so if the employer had no WC insurance, an injured worker would have to file suit against the employer for the employers liabil... read more
  • March 13, 2014 at 1:48 pm
    Nan says:
    Hopefully they have tightened, not weakened, the workers comp laws in Texas. A friend's daughter fell at work in Texas and seriously injured her back. The payout was a flat ... read more
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