Court Orders Employer to Repay $104K to Texas Mutual

Texas Mutual Insurance Co. announced that a Travis County district court sentenced Cheryl Bussey of Mansfield, Texas, on workers’ compensation fraud-related charges. Bussey was sentenced to 10 years’ deferred adjudication and ordered to repay $103,851 to Texas Mutual.

Bussey was the owner of Trans X Corp, a temporary employment agency in Arlington, Texas. Bussey was involved in a scheme to conceal the number of employees and annual payroll of Trans X Corp from Texas Mutual.

Because workers’ compensation insurance premium is based in part on payroll, such a scheme results in a business paying less premium than it actually owes. By paying less premium, an employer can gain an unfair advantage over competitors.

Source: Texas Mutual Insurance Co.