Texas Employer Indicted for Premium Fraud

April 16, 2014

A Travis County grand jury indicted G&M Construction and Glenda Gail Miller Howell on workers’ compensation fraud-related charges, according to Texas Mutual Insurance Company.

G&M Construction was a road repair contractor that performed crack seal operations and sign erection for the Texas Department of Transportation. Texas Mutual alleged that between July 19, 2005, and July 19, 2008, Glenda Howell, on behalf of G&M Construction, intentionally misrepresented operations and payroll. G&M Construction was owned by Glenda Howell’s father.

Because workers’ compensation insurance premium is based, in part, on payroll and operations, this type of scheme results in an employer being charged a lower premium than it actually owes. By misrepresenting payroll and operations, an employer can gain an unfair advantage over competitors.

A grand jury indictment is a formal accusation – not a conviction – of criminal conduct.

 

Source:  Texas Mutual Insurance Company.

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