Midland Business Pleads Guilty to Hiding Payroll from Texas Mutual

Texas Mutual Insurance Company reported today that AB Abatement, Inc. of Midland, Texas, pled to workers’ compensation fraud-related charges. A Travis County district court ordered AB Abatement, Inc. to pay $70,000 in restitution to Texas Mutual and a $1,000 fine.

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.

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.

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3 Responses to Midland Business Pleads Guilty to Hiding Payroll from Texas Mutual

  1. Pingback: WORKERS COMPENSATION LAW BLOG

  2. Pingback: Workers' Comp Fraud Blotter (2/2/2012) – Fake Bullet Holes Lead To Arrest Of Bus Driver For Fraud and Making False Robbery Report

  3. Pingback: Fraud

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