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Texas Mutual Investigation Results In Indictment Of Crane Company

01 Apr, 2009 WorkersCompensation.com

                               
Austin, TX (CompNewsNetwork) - Texas Mutual Insurance Company reported today that a Travis County grand jury indicted Gary C. Quintinsky and Ellynn A. Ogilvie of Houston on workers' compensation premium fraud-related charges.  

Quintinsky and Ogilvie operated United Crane Inc. and multiple related companies in Houston, Kyle and Fort Worth.  The indictments allege that from August 16, 2000 to October 11, 2004, Quintinsky and Ogilvie concealed payroll and employees from Texas Mutual.  

Because workers' compensation insurance premium is based, in part, on payroll, Quintinsky and Ogilvie's scheme allowed them to obtain a lower workers' compensation insurance premium than United Crane Inc. actually owed.  By hiding payroll to pay a lower premium, a company can gain an unfair advantage over competitors.

The indictments follow a February 2007 Travis County jury verdict finding that Quintinsky committed civil fraud against Texas Mutual for conduct alleged in the criminal indictment.  In that case, the civil jury awarded Texas Mutual more than $5 million in actual damages and $2.5 million in punitive damages.  It was the largest premium fraud verdict in Texas Mutual's history.  

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 25 percent of the market. Since 1991, the company has provided a stable, competitively priced source of workers' comp insurance for Texas employers. In 2008, Texas Mutual saved or recovered $4.1 million through its zero tolerance for fraud program.

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