TX Business Convicted of Workers’ Compensation Fraud
JANUARY 31, 2020 BY WORKCOMPWIRE
Austin, TX – The Texas Department of Insurance Division of Workers’ Compensation (TDI-DWC) recently announced that HHDP Security, a Houston security company, has been convicted of premium fraud and ordered by a Travis County District Court judge to pay $51,131 in restitution.
Between May 28, 2005, and April 1, 2013, HHDP Security made misrepresentations about the payroll and operations at the business, and a related company, Houston Harris Division Patrol, Inc. These security guard companies are headquartered in Houston, with an additional office in Dallas.
Workers’ compensation insurance premiums are based, in part, on a company’s payroll and the type of work performed. An employer who misrepresents payroll and operations receives a lower premium and gains an unfair advantage over their competitors.
The Division of Workers’ Compensation’s (DWC) prosecution unit obtained the indictment.
Members of DWC’s prosecution unit are embedded in the Travis County District Attorney’s Office and are paid by DWC to fight fraud across Texas.