Texas Business Pleads Guilty to Hiding Payroll

AB Abatement, Inc. of Midland, Texas, pled guilty to workers’ compensation fraud-related charges, according to Austin-based Texas Mutual Insurance Company.

Vanco Insulation, Inc., owned by Robert Crow of Midland, obtained workers’ compensation coverage through Texas Mutual from April 2003 to October 2006. During that time, related company, AB Abatement, Inc., misrepresented numbers of employees and payroll associated with the Vanco Insulation, Inc. policies to Texas Mutual.

A Travis County district court ordered AB Abatement, Inc. to pay $70,000 in restitution to Texas Mutual and a $1,000 fine.

The company maintains three teams of in-house fraud investigators. In 2011, they saved, identified or recovered $5.2 million through their claimant, health care provider and employer fraud investigations.

Source: Texas Mutual Insurance Company