Premium Fraud Indictments
August 1, 2011 2 Comments
Castonguay and Aguilar own and operate Premrock Commercial Drywall Ltd. Co., a Dallas- area drywall contractor. The indictments allege that the individuals intentionally misrepresented the payroll of Premrock Commercial Drywall Ltd. Co. between December 26, 2006, and May 14, 2007. The misrepresentation allowed the company to fraudulently obtain lower premiums from Texas Mutual.
Workers’ compensation insurance premium is based, in part, on payroll. An employer who intentionally underreports payroll is charged a lower premium than it actually owes. By fraudulently concealing or underreporting payroll, an employer gains an unfair advantage over competitors.
If you’re interested in learning more about the fight against workers’ comp fraud, visit the Fighting Fraud section of our website. It includes fraud articles, red flags for fraud and copies of our FraudStoppers posters in English and Spanish.
Note: A grand jury indictment is a formal accusation, not a conviction, of criminal conduct.