Texas Mutual Announces Fourth Indictment in Health Care Provider Fraud Case

Texas Mutual Insurance Company announced today that a Travis County grand jury indicted Michael T. Douglas of Denton, Texas on aggravated perjury charges. The indictment alleges that Douglas, a medical technician, presented false testimony on matters relating to the investigation of his sister, Barbara A. Douglas, and her company, Western Medical Evaluators.

Barbara A. Douglas, her company and her father, Howard T. Douglas, III M.D., were indicted in August 2010 on felony workers’ compensation fraud-related charges. Western Medical Evaluators provided functional capacity evaluations to injured workers in Texas.

Those indictments alleged that between February 2007 and July 2008, Barbara A. Douglas, Howard T. Douglas, III M.D. and Western Medical Evaluators overbilled Texas Mutual for the time taken to perform evaluations.

The Western Medical Evaluators, Barbara Douglas and Howard Douglas investigations were part of the Texas Mutual zero tolerance for fraud policy. Texas Mutual maintains three teams of investigators permanently assigned to investigate every report of suspected fraud.

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

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