Houston Company to Pay a Quarter Million Dollars to Settle Workers’ Comp Fraud Case

The Division of Workers’ Compensation reports that a Houston company has pleaded guilty today to workers’ compensation premium fraud in a case that spanned four years.

Alpha Mar, which makes custom parts for various industries, entered the plea in a Travis County District Court. The company was ordered to pay $250,000 to Texas Mutual Insurance Company, the workers’ compensation carrier. The ADAR Group also found specimens for Next Health by giving people $50 gift cards to urinate in cups at Whataburger restrooms, according to a civil suit filed by UnitedHealthcare. Next Health labs conducted the tests under the guise of a “wellness study,” the lawsuit alleges.

Business Insurance details the evidence of employee misrepresentation that led to the charges and conviction. The Texas Department of Insurance, Division of Workers’ Compensation’s (DWC) prosecution unit obtained the conviction.