Texas Mutual Insurance Co. reported that a Travis County district court has sentenced Joe D. Lozano, Sr. of Midland, Texas, on workers’ compensation fraud-related charges.
Lozano reported a job-related injury while working as an appliance repairman for A & A Appliance in Midland and claimed he was unable to work because of his injury. Texas Mutual began paying income benefits to him, but then discovered Lozano was working as a self-employed appliance repairman.
The Texas Department of Insurance, Division of Workers’ Compensation, prosecutor in Travis County handled the case. The court sentenced Lozano to a Class A misdemeanor. He served one day in jail and paid $6,049 in restitution to Texas Mutual.
Texas law requires claimants to contact their workers’ comp carrier when they return to work. Left unchecked, double dipping and other workers’ comp fraud can lead to higher premiums for all Texas employers.
Source: Texas Mutual Insurance Co.
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