Texas Mutual Insurance Company reported recently that Bar H Concrete, Inc. of Sulphur Springs pleaded guilty to workers’ compensation fraud-related charges. A Travis County district court ordered Bar H Concrete to pay $300,000 in restitution to Texas Mutual.
Bar H Concrete, owned by Charles Rick Henderson and John Herbert Heilman of Sulphur Springs, obtained workers’ compensation coverage through Texas Mutual from January 11, 2005, to January 11, 2009. During that time, Bar H Concrete concealed payroll through a related company that was not disclosed to Texas Mutual.
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