Austin Business Hides Payroll, Ordered To Pay $250K To Texas Mutual

                               Austin, TX ( - Texas Mutual Insurance Company reported today that a Travis County district court sentenced Ronald (Ron) Rene Hernandez of Austin on workers' compensation fraud-related charges.

The court sentenced Hernandez to six years' deferred adjudication and 100 hours of community service. It also ordered him to pay $250,000 to Texas Mutual and a $2,500 fine.

Hernandez operated A & R Interests, Inc., a temporary employment agency in Austin.

A & R obtained workers' compensation insurance through Texas Mutual from February 6, 2004, to July 2, 2007. During that time, Hernandez was involved in a scheme to conceal the number of employees and annual payroll of A & R Interests, Inc. from Texas Mutual.

Because workers' compensation insurance premium is based in part on payroll, such a scheme results in a business paying less premium than it actually owes. By paying less premium, an employer can gain an unfair advantage over competitors.

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