Texas Sign Installer Pleads Guilty To Workers’ Comp Fraud


Austin,TX (CompNewsNetwork) - Texas Mutual Insurance Company reported today that a Los Fresnos, Texas man pleaded guilty to workers' compensation fraud-related charges. A Travis County district court sentenced Hector Cuellar to two years' deferred adjudication. The court also ordered Cuellar to pay $2,775 in restitution to Texas Mutual Insurance Company and complete 100 hours of community service. 

Cuellar reported a job-related incident that caused multiple injuries while working as a sign installer in Pharr, Texas. He claimed he was unable to work as a result of his injuries, and Texas Mutual Insurance Company began paying him income benefits.

Meanwhile, Texas Mutual uncovered evidence that Cuellar was working as a journeyman sign installer   for a sign company in Harlingen, Texas while receiving disability income 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. The Cuellar investigation was part of Texas Mutual's zero tolerance for fraud policy. The company maintains three teams of investigators permanently assigned to investigate every report of suspected fraud.

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