Texan Sentenced in Workers’ Comp Fraud Case

November 5, 2008

Texas Mutual Insurance Company reported that Felix Prado of Falfurrias, Texas, pleaded guilty to workers’ compensation fraud-related charges. A Travis County district court sentenced Prado to 30 days in the Travis County jail and ordered him to repay $2,791 to Texas Mutual.

Prado reported a job-related injury while working as a laborer for XXtreme Pipe Services in Houston. He claimed he was unable to work as a result of the injury, and Texas Mutual Insurance Company began paying him income benefits.

Meanwhile, Texas Mutual uncovered evidence that Prado was working as a laborer for a Porter, Texas, company while receiving disability income benefits.

Investigators call this type of scam double-dipping because the claimant collects benefits for being too injured to work when he or she is gainfully employed. Texas law requires claimants to contact their workers’ comp carrier when they return to work.

Source: Texas Mutual Insurance Company

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