Texas Mutual Insurance Company reported that RBH Enterprises Inc. of Keller, Texas, recently pleaded guilty to a first-degree felony offense for workers’ compensation insurance fraud-related charges. Judge Julie Kocurek of the 390th Travis County District Court ordered the company to pay a $100 fine to the state and $25,000 in restitution to Texas Mutual.
Texas Mutual investigator Sandra Milburn uncovered evidence that RBH Enterprises was fraudulently represented as an independent subcontractor by an insured. The insured applied for workers’ compensation coverage through Texas Mutual, but it did not report the payroll of RBH. Because insurance companies use payroll as a basis for their premium calculations for workers’ comp coverage, the scam allowed the insured company to obtain a lower premium than it actually owed.
Topics Texas Fraud Workers' Compensation
Was this article valuable?
Here are more articles you may enjoy.
Diageo’s Toxic Spill Hits a Pristine River in Scottish Whisky Country 
Home Insurance Tops Property Taxes in Squeeze for US Households 
EU Cyber Agency Warns Websites May Go Dark as PHP Prepares Critical Fix 
KCC Says Isaias Insured Losses to Be $3 Billion; AM Best Calls Storm an Earnings Event From This Issue
