Austin, TX – The Texas Department of Insurance’s Division of Workers’ Compensation (TDI-DWC) recently announced that a Travis County district court judge has convicted Sehgal & Sons Enterprises (Ultra Business Services Inc.) of first-degree felony in a scheme to defraud Texas Mutual Insurance Company (Texas Mutual).
The court found that from August 2011 through December 2014, the company, owned by Kunal Puri of Stafford, Texas concealed payroll by having two separate payroll accounts with the Texas Workforce Commission, while reporting only the smaller payroll account to Texas Mutual.
“Concealing payroll is a scheme companies use to get lower workers’ compensation insurance rates and that’s fraud,” says DWC’s Deputy Commissioner of Compliance and Investigations, Debra Knight. “We worked closely with the Texas Workforce Commission on this investigation and discovered new ways to track fraud like this in the future, so we’re pleased with the outcome.”
The Division of Workers’ Compensation (DWC) Prosecution and Fraud Units also worked closely with the affected insurance carriers, Texas Mutual, Service Lloyds, and Travelers.