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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New Update: Texas Drywall Workers’ Compensation Fraud Case Highlights Payroll Reporting and Insurance Enforcement
The Texas workers’ compensation fraud case involving Cristino Tapia Castaneda and Texana Drywall Construction remains an important example of the enforcement risks associated with allegedly falsified payroll information and insurance applications. According to the Texas Department of Insurance (TDI), a Travis County grand jury returned an indictment on November 8, 2024, alleging that Castaneda and his company engaged in fraudulent activities involving workers’ compensation insurance coverage.
The alleged scheme extended from 2014 through 2024 and involved approximately $170,000 in disputed insurance-related transactions. Although Castaneda was scheduled to appear before the 427th District Court in Travis County on February 12, 2025, the publicly available official materials reviewed for this October 2026 update do not establish a subsequent conviction, guilty plea, sentencing decision, or dismissal.
The original investigation, conducted by the Texas Division of Workers’ Compensation Fraud Unit, focused on allegations that Texana Drywall Construction misrepresented payroll information and other insurance-related details to obtain coverage for major construction projects in the Austin area. Investigators identified Texas Mutual and National Specialty Insurance as the carriers involved in the alleged misconduct.
The charges included securing execution of a document by deception, a second-degree felony, along with allegations of insurance fraud and fraudulently obtaining workers’ compensation coverage. These allegations have not been established as proven criminal conduct in the official case information available for this update. An indictment represents a formal accusation, and the defendants remain entitled to the presumption of innocence unless guilt is established through the legal process.
The broader importance of the case extends to how construction companies calculate and report payroll when purchasing workers’ compensation insurance. Insurers rely on accurate employee classifications, wage records, and descriptions of business operations to determine appropriate premiums and assess workplace risks. Misrepresenting these details can result in unpaid premiums, disputes over insurance coverage, and potential criminal investigations.
In January 2026, TDI reported that its Fraud Unit contributed to investigations resulting in $50.9 million in court-ordered restitution during fiscal year 2025, demonstrating the continued scale of insurance fraud enforcement in Texas. That statewide figure is not a recovery associated with Castaneda or Texana Drywall Construction. Until a verified court disposition becomes available, the allegations in this specific case should continue to be described as pending or unresolved rather than as an established fraud conviction.
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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