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.
Topics Texas Fraud Workers' Compensation
Was this article valuable?
Here are more articles you may enjoy.
Ship Insurers Set for Major Claims From Iran War, Allianz Says 
Trump Administration Backtracks on Removing Ocean Sensors 
Big I: Independent Agencies’ Market Share Up Slightly in 2025 
5 Years After Surfside Collapse: Safer Condos, More Transparency for Underwriters 
