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Texas Fraud Scheme Costs Business Owner $67K

13 May, 2008 WorkersCompensation.com

                               

Austin, TX (CompNewsNetwork) - Texas Mutual Insurance Company reported today that a Travis County jury found Sue Tennison of Lewisville and her business, All Metroplex Landscape Services Inc., guilty on workers' compensation fraud-related charges. Tennison misrepresented the size of her payroll to lower her workers' comp premium.

The court ordered Tennison to pay a $10,000 fine and $57,751 in restitution to Texas Mutual Insurance Company. The court also ordered Tennison to serve 10 years' probation.

Workers' comp premium is based in part on payroll. Tennison reported to Texas Mutual that some of her employees worked for an independent subcontractor. Because independent subcontractor payroll is not included in the premium calculation, the scam allowed Tennison to pay a lower premium than she owed.

Texas law requires employers to report all employees and payroll to their insurance companies. By hiding payroll, an employer can gain an unfair advantage against honest competitors.

Texas Mutual Insurance Company is the state's leading provider of workers' comp insurance. In 2007, the company recovered $1.1 million in premium fraud through its zero tolerance policy. It saved another $4.7 million through its claimant and health care provider investigations.

For more information, visit the Fighting Fraud section at texasmutual.com.

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