Texas Oil and Gas Contracting Firm Indicted for Workers’ Comp Fraud

July 10, 2007

Texas Mutual Insurance Company reported that a Travis County grand jury indicted ZIPCO Services Inc. and its owner, Jerry Don Calicutt, on workers’ compensation fraud-related charges. The indictments allege that ZIPCO Services Inc. defrauded Texas Mutual of more than $100,000 in premium.

ZIPCO Services Inc. is an oil and gas contractor located in Kilgore, Texas. The indictments allege that the defendants misrepresented the size of ZIPCO’s operations and number of employees to Texas Mutual. Because workers’ comp insurance premium is based in part on payroll, the scheme allowed the company to pay less premium than it actually owed.

Texas Mutual noted that a grand jury indictment is a formal accusation – not a conviction – of criminal conduct.

Source: Texas Mutual.

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