Austin, TX – Texas Mutual Insurance Company recently reported that a Travis County district court sentenced Ricky Allen Martinez of Sugar Land, Texas, on workers’ compensation fraud-related charges.
Martinez reported a job-related injury while working as a sign installer for Graphtec, Inc., in Houston, Texas, and claimed he was unable to work because of his injury. Texas Mutual began paying income benefits to him, but then discovered Martinez was working as an installer for another company.
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.
The Texas Department of Insurance, Division of Workers’ Compensation, prosecutor in Travis County handled the case. The court sentenced Martinez to state jail felony with five years deferred adjudication. He will pay $26,471.43 in restitution to Texas Mutual.
Texas law requires claimants to contact their workers’ compensation carrier when they return to work. Left unchecked, double-dipping and other workers’ compensation fraud can lead to higher premiums for all Texas employers.
Source: Texas Mutual