A Texas janitorial company was convicted of a second-degree felony for attempting to defraud Texas Mutual Insurance Company in a $180,000 workers’ compensation fraud scheme.
HSC International Ltd., owned by Hyong Su Choi, was convicted by a Travis County district court judge for providing false payroll numbers to the insurance carrier to avoid paying proper premiums.
The court found HSC provided the false information from Sept. 2, 2014, until Dec. 5, 2016, according to the Texas Department of Insurance.
HSC pleaded guilty to the felony conviction and will pay $180,000 in restitution.
The Division of Workers’ Compensation (DWC) Prosecution and Fraud Units worked closely with Texas Mutual during the investigation.
“The (Texas) workers’ compensation system is participant-funded, and when a bad actor defrauds the system, it impacts everyone,” DWC Deputy Commissioner of Compliance and Investigations Debra Knight said. “Through a target letter we were able to send the owner information we had about the case which led to this plea deal, saving taxpayers the cost of a lengthy investigation, and we’re very pleased with the outcome.”
