Austin, TX (WorkersCompensation.com) - Texas Mutual Insurance Company reported today that a Travis County grand jury indicted Corey Lee of Alvarado, Texas, on workers' compensation fraud-related charges. The indictment alleges that Lee obtained $3,956 in workers' compensation benefits he was not entitled to.
Lee reported a job-related injury while working as an equipment operator for Gainesville Personnel Solutions. He claimed he was unable to work as a result of the injury, and Texas Mutual began paying income benefits to him.
Meanwhile, Texas Mutual uncovered evidence that Lee worked for three other companies while receiving benefits.
Investigators call this type of scam double-dipping because the claimant collects benefits for being too injured to work when he or she is, in fact, gainfully employed. 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.
Note: A grand jury indictment is a formal accusation - not a conviction - of criminal conduct.
About Texas Mutual Insurance Company Austin-based Texas Mutual Insurance Company is the state's leading provider of workers' compensation insurance, with approximately 34 percent of the market. Since 1991, the company has provided a stable, competitively priced source of workers' comp insurance for Texas employers. Texas Mutual is an industry leader in the fight against workers' compensation fraud. The company maintains three teams of in-house fraud investigators. In 2011, they saved, identified or recovered $5 million through their claimant, health care provider and employer fraud investigations.