Austin, TX – Texas Mutual Insurance Company recently reported that a Travis County district court sentenced Richard R. Gutierrez of Seguin, Texas, on workers’ compensation fraud-related charges.
Gutierrez reported an on the job injury while working as a merchandiser for Tri-City Distributors, LP, in New Braunfels, Texas, and claimed he was unable to work because of his injury. Texas Mutual began paying income benefits to him, but then discovered Gutierrez was working as a seasonal employee for another business. 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 Gutierrez to a State Jail Felony with two years deferred adjudication. He will pay $16,727.70 in restitution to Texas Mutual.
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.
Source: Texas Mutual