Wallace Cleared of Charges in Texas ‘Shadow Company’ Case

April 30, 2003

A district judge in Austin recently cleared Larry Wallace of the Wallace Insurance Agency in Rockwall, Texas of all charges related to an alleged workers’ compensation fraud scheme for which he was indicted in early 2001.

Judge Charles F. Baird of the 390th District Court of Travis County dismissed charges against Wallace in a case in which workers’ comp coverage was allegedly obtained for a company with one employee and a $20,000 payroll, when the customer actually owned another uninsured company with as many as 100 employees and a million dollar-plus payroll.

The customer accepted a five-year deferred adjudication and agreed to pay the State $200,000 in restitution. Wallace, however, pleaded not guilty. After hearing evidence in the case, the court acquitted Wallace of all charges.

It is expected that the court will require all records of the charges against Wallace in this case to be expunged.

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