Court Orders Employer to Pay $35K to Texas Mutual

January 10, 2013

Texas Mutual Insurance Company announced today that Everest Contract Services, LLC of Irving, Texas, pled guilty to workers’ compensation fraud-related charges. A Travis County district court ordered the company to pay $35,000 in restitution to Texas Mutual.

Everest Contract Services misrepresented numbers of employees and payroll associated with a related company, Premrock Commercial Drywall Ltd. Co. Premrock Commercial Drywall of Irving, Texas, owned by Timothy Castonguay and Carlos Aguilar, obtained workers’ compensation coverage through Texas Mutual from Dec. 26, 2006, to May 14, 2007.

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 Insurance Company

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