January 15, 2025 | JacobiJournal.com — Compensation fraud charges have been filed against Cristino Tapia Castaneda, the owner of Texana Drywall Construction in Texas. He is scheduled to appear in Travis County District Court on February 12 to face three counts of fraud totaling $170,000, according to the Texas Department of Insurance Division of Workers’ Compensation (DWC).
Charges Against Castaneda and Texana Drywall Construction
In November, a grand jury indicted Castaneda on charges of Securing Execution of Document by Deception, a second-degree felony. Additionally, Texana Drywall Construction faces accusations of Insurance Fraud and Fraudulently Obtaining Worker’s Compensation Coverage, both classified as state jail felonies. Texas Drywall Company Owner
Allegations and Investigation Findings
The DWC’s Compensation Fraud Unit conducted a detailed investigation, revealing that Castaneda and his company allegedly misled multiple workers’ compensation insurance providers. They reportedly secured coverage for large, high-profile construction projects in Austin through deceptive means. Furthermore, the investigation uncovered that Castaneda falsified payroll information to significantly reduce the premiums his company had to pay.
Insurance Providers Affected
These fraudulent activities impacted major insurance carriers, including Texas Mutual and National Specialty Insurance, as reported by the DWC. The insurers were deceived by the manipulated information provided by Castaneda and his company.
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FAQs: Texas Drywall Company Workers’ Compensation Fraud
What is this workers’ compensation fraud case about?
It involves allegations that Texana Drywall Construction and its owner falsified payroll and misled insurers to reduce premium costs.
What charges were filed against the drywall company owner?
Cristino Castaneda faces three felony counts, including securing execution of a document by deception and insurance fraud.
Which insurance providers were impacted by the scheme?
The fraud affected major carriers such as Texas Mutual and National Specialty Insurance, according to the Texas Department of Insurance.
When is the court hearing scheduled?
Castaneda is set to appear in Travis County District Court on February 12, 2025.
How do I report workers’ compensation fraud in Texas?
Workers’ compensation fraud in Texas can be reported to the Texas Department of Insurance, Division of Workers’ Compensation (DWC), either online, by phone, or via mail. The DWC investigates suspected fraud by employers, employees, or third parties.
What is a possible consequence of filing a false workers’ compensation claim?
Filing a false workers’ compensation claim can result in criminal charges, fines, restitution, and potential jail or prison time, depending on the severity of the fraud. Employers found committing fraud, like in this case, can face felony charges and significant financial penalties.
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