Two Indicted in Travis County on Workers’ Comp Fraud Charges

Texas Mutual Insurance Company reported today that Travis County grand juries indicted, in separate cases, Curtis L. Blankenship, Sr. of San Antonio and Melody Tendayi of Austin on workers’ compensation fraud-related charges.

Blankenship, a Texas Mutual policyholder, reported a company fatality involving his son as a work-related accident. As a result, Texas Mutual began paying death benefits to him. Meanwhile, a Texas Mutual investigation uncovered evidence that Blankenship knew the fatality was not work-related.

The indictment alleges that Blankenship obtained $39,000 in workers’ compensation benefits he was not entitled to.

In an unrelated case, Tendayi reported a job-related injury while working as a youth care worker for Youth and Family Alliance in Austin. She claimed she was unable to work as a result of the injury, and Texas Mutual began paying income benefits to her.

Meanwhile, Texas Mutual uncovered evidence that Tendayi worked for another company while receiving income benefits.

The indictment alleges that Tendayi obtained $5,762 in workers’ compensation benefits she was not entitled to.

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

Village Mills Man Sentenced to Jail Time for Workers’ Comp Fraud

Texas Mutual Insurance Company reported today that a Travis County court sentenced Clifford K. Franklin of Village Mills, Texas on workers’ compensation fraud-related charges. Franklin fraudulently received $1,453 in benefits. The court sentenced Franklin to 180 days in jail and ordered him to pay court costs.

Franklin reported a job-related injury while working as an equipment operator for Odin Demolition and Asset Recovery, Inc. in Deer Park, Texas. He claimed he was unable to work as a result of the injury, and Texas Mutual began paying income benefits to him.

Meanwhile, Texas Mutual uncovered evidence that Franklin was working as an equipment operator for another employer while receiving 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, in fact, gainfully employed. Texas law requires claimants to contact their workers’ comp carrier when they return to work.

Left unchecked, double-dipping and other workers’ comp fraud can lead to higher premiums for all Texas employers.

Court Orders Employer to Repay $104K to Texas Mutual

Texas Mutual Insurance Company announced today that a Travis County district court sentenced Cheryl Bussey of Mansfield, Texas on workers’ compensation fraud-related charges. The court sentenced Bussey to 10 years’ deferred adjudication and ordered to her 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.

Claimant Fraud Conviction, Indictments

Texas Mutual Insurance Company reported today that a Travis County district court sentenced Bobby Phifer of Greenville, Texas on workers’ compensation fraud-related charges. Phifer was sentenced to six months in jail.

Phifer reported a job-related injury while working as a laborer for JC2DC2 Enterprises of Austin.  He claimed he was unable to work as a result of the injury, and Texas Mutual began paying income benefits to him.

Meanwhile, Texas Mutual uncovered evidence that Phifer was working as a general laborer for multiple staffing services while receiving 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, in fact, gainfully employed. Texas law requires claimants to contact their workers’ comp carrier when they return to work. Left unchecked, double-dipping and other workers’ comp fraud can lead to higher premiums for all Texas employers.

In other double-dipping news

Travis County grand juries indicted two claimants, in separate cases, on workers’ compensation fraud-related charges. 

Thomas Mikulenka of League City, Texas and Chindra Michael of Silsbee, Texas allegedly collected $23,493 and $3,437 in benefits, respectively, from Texas Mutual that they were not entitled to.

 Texas Mutual notes that a grand jury indictment is a formal accusation, not a conviction, of criminal conduct.

Claimant Fined, Ordered to Pay Restitution to Texas Mutual

Texas Mutual Insurance Company reported today that a Travis County district court sentenced Jason Whatley of Borger, Texas on workers’ compensation fraud-related charges. The court ordered Whatley to pay a $500 fine and repay $13,488 in benefits to Texas Mutual.

Whatley reported a job-related injury while working as a driver for Frontier Fluid Service Inc. of Canadian, Texas. He claimed he was unable to work as a result of the injury, and Texas Mutual began paying income benefits to him.

Meanwhile, Texas Mutual uncovered evidence that Whatley was working multiple jobs, including maintenance worker and oilfield pumper, while receiving 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, in fact, gainfully employed. Texas law requires claimants to contact their workers’ comp carrier when they return to work. Left unchecked, double-dipping and other workers’ comp fraud can lead to higher premiums for all Texas employers.

Court Orders Claimant to Repay $21K to Texas Mutual

Texas Mutual Insurance Company reported today that a Travis County district court sentenced Lashantae Reeves of Houston on workers’ compensation fraud-related charges. The court sentenced Reeves to one year of deferred adjudication and ordered her to repay $21,000 in benefits to Texas Mutual.

Reeves reported a job-related injury while working as a clerk for Harrison Personnel Services of Houston. She claimed she was unable to work as a result of the injury, and Texas Mutual began paying income benefits to her.

Meanwhile, Texas Mutual uncovered evidence that Reeves was working as a customer service representative for a Houston law firm and as a health education coordinator for a Houston health clinic while receiving 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, in fact, gainfully employed. Texas law requires claimants to contact their workers’ comp carrier when they return to work. Left unchecked, double-dipping and other workers’ comp fraud can lead to higher premiums for all Texas employers.