Business Owner Sentenced for Workers’ Comp Fraud in Texas

April 2, 2008

Texas Mutual Insurance Company reported that an Arp, Texas, business owner pled guilty in a workers’ compensation fraud-related case.

A Travis County district court ordered Jerry Don Calicutt, owner of ZIPCO Services Inc., to serve 18 months’ probation and perform 100 hours of community service. The court also ordered Calicutt to pay $61,461 to Texas Mutual and a $4,000 fine.

ZIPCO Services Inc. is an oil and gas contractor located in Kilgore, Texas. Calicutt misrepresented the size of ZIPCO’s operations and number of employees to Texas Mutual, the insurer reported.

Because workers’ compensation insurance premium is based in part on payroll, the scheme allowed the company to pay less premium than it actually owed.

Source: Texas Mutual Insurance Company,

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