Texas Laborer Sentenced for Workers’ Compensation Fraud

January 8, 2009

Texas Mutual Insurance Company announced that a Travis County district court sentenced Randy Alexander of Anahuac, Texas, on workers’ compensation fraud-related charges.

The court sentenced Alexander to 30 days in jail, five years’ probation, 200 hours of community service and ordered him to repay $10,032 to Texas Mutual.

Alexander reported a job-related injury while working as a laborer for Channel Refractory Services Inc. in Channelview. He claimed he was unable to work as a result of the injury, and Texas Mutual began paying him income benefits.

Meanwhile, Texas Mutual uncovered evidence that Alexander was working as a laborer for nine different employers in Texas 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. Left unchecked, double-dipping can lead to higher premiums for all Texas employers.

Source: Texas Mutual Insurance Company, www.texasmutual.com

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