Texas Construction Firm Owners Sentenced for Premium Fraud

A Travis County district court sentenced Anthony Stokes and Mario Williams of Little Elm, Texas for workers’ compensation fraud-related charges, reported Texas Mutual Insurance Company. Stokes and Williams were sentenced to one year deferred adjudication and ordered to pay $41,844 in restitution to Texas Mutual.

Lone Star Construction, located in Dallas, obtained workers’ compensation coverage through Texas Mutual Insurance Company between the period of Jan. 26, 2011 and Oct. 19, 2012. Texas Mutual alleged that during this period, owners Stokes and Williams intentionally misrepresented the number of employees and amount of payroll associated with the company by reporting contract laborers as subcontractors.

Because workers’ compensation insurance premium is partially based on payroll, this type of scheme results in an employer being charged a lower premium than he or she actually owes.

Source: Texas Mutual Insurance Company