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Texas Mutual Announces Premium Fraud Indictments

09 Dec, 2008 WorkersCompensation.com

                               
Austin, TX (CompNewsNetwork) - Texas Mutual Insurance Company reported today that a Travis County grand jury indicted Jeffery Haas of McKinney and Randall Estes of Allen on workers' compensation fraud-related charges.

Haas and Estes operated a now defunct company called Toledo Landscaping and Development LLC in McKinney. The indictments allege that from December 2003 to December 2005, Haas and Estes concealed payroll and employees from Texas Mutual. Because workers' compensation insurance premium is based, in part, on payroll, the scheme allowed Haas and Estes to obtain a lower workers' compensation insurance premium than Toledo owed. By hiding payroll to pay a lower premium, a company can gain an unfair advantage over competitors.

Texas Mutual notes that 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 25 percent of the market. Since 1991, the company has provided a stable, competitively priced source of workers' comp insurance for all Texas employers. Texas Mutual has zero tolerance for fraud. In 2007, the company recovered $1.1 million from employers who tried to illegally lower their premium. It saved $4.2 million through its claimant fraud investigations, and it prevented $1.3 million in health care provider fraud.

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