This week, a Travis County district court judge convicted HSC International Ltd. of second-degree felony in a scheme to defraud Texas Mutual Insurance Company (Texas Mutual).
The court found that from September 2, 2014, and continuing until December 5, 2016, the Frisco, Texas janitorial company, owned by Hyong Su Choi, provided false payroll numbers to the insurance carrier to avoid paying proper premiums for workers’ compensation coverage. The corporation pleaded guilty to the felony conviction and will pay $180,000.00 in restitution.
“The workers’ compensation system is participant-funded, and when a bad actor defrauds the system, it impacts everyone,” says DWC’s Deputy Commissioner of Compliance and Investigations, Debra Knight. “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.”
The Division of Workers’ Compensation (DWC) Prosecution and Fraud Units worked closely with the affected insurance carrier, Texas Mutual.
If you suspect workers’ compensation fraud call DWC’s fraud hotline at 844-FRAUD99 (800-252-3439) or visit www.tdi.texas.gov/wc/ci/wcfraud.html.
For more information contact DWCCommunications@tdi.texas.gov.