A Texas construction company will pay $300,000 for workers’ compensation fraud after it was found guilty of committing a first-degree felony for its scheme to defraud the Texas Mutual Insurance Company.
Sehgal & Sons Enterprises (Ultra Business Services Inc.) was found guilty of concealing its payroll from August 2011 through December 2014 by having two separate payroll accounts with the Texas Workforce Commission, while reporting a smaller payroll account to Texas Mutual.
“Concealing payroll is a scheme companies use to get lower workers’ compensation insurance rates and that’s fraud,” said Debra Knight, Division of Workers’ Compensation Deputy Commissioner of Compliance and Investigations.
The DWC Prosecution and Fraud Units worked closely with the affected insurance carriers, Texas Mutual, Service Lloyds, and Travelers.
