Texas Man Indicted in Premium Fraud Case

A Travis County grand jury indicted an Irving man on workers’ compensation fraud-related charges, according to Texas Mutual Insurance Company.

Harold E. Jenkins, owner of CTJ Maintenance, Inc., obtained workers’ compensation coverage through Texas Mutual from Aug. 26, 2006, to Sept. 14, 2009. Texas Mutual alleges that, during that time, Jenkins misrepresented the number of employees and payroll associated with the company.

Because workers’ compensation insurance premium is based, in part, on payroll, this type of scheme results in an employer being charged a lower premium than it actually owes. By hiding payroll, an employer can gain an unfair advantage over competitors.

Note: A grand jury indictment is a formal accusation, not a conviction, of criminal conduct.

Source: Texas Mutual Insurance Company