Court Orders Employer to Pay $100K to Texas Mutual

October 28, 2010

A Travis County district court has sentenced Joffrey Majors of Parker, Texas on workers’ compensation fraud-related charges. The court sentenced Majors to four years’ deferred adjudication and ordered him to pay $100,000 to Texas Mutual Insurance Co.

Majors operated Ameripro Drivers LLC, a temporary employment agency in Dallas, Texas. According to the insurer, Majors was involved in a scheme to conceal the number of employees and annual payroll of Ameripro Drivers LLC 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

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