Texas Mutual Announces $200K Verdict in Premium Fraud Case

August 21, 2009

Texas Mutual Insurance Company reported that Erection Professionals Inc. in Pleasanton has pleaded guilty to workers’ compensation fraud-related charges. A Travis County district court ordered the company to repay $200,000 to Texas Mutual.

Texas Mutual alleged that Erection Professionals – which is owned by Gregory S. Dicaro and erects metal buildings – intentionally misrepresented the number of its employees and its payroll to Texas Mutual from April 2004 to July 2006 and February 2007 to August 2007.

Because workers’ compensation insurance premium is based, in part, on payroll, this type of scheme results in an employer being charged a lower premium than it actually owes. By hiding payroll, an employer can gain an unfair advantage over competitors.

Source: Texas Mutual Insurance Company, www.texasmutual.com