Texas Mutual: 3rd Provider Sentenced

Three family members from Denton, Texas, have been sentenced on workers’ compensation fraud-related charges.

Texas Mutual Insurance Co. reported that in mid-April Michael T. Douglas pleaded guilty to charges of perjury in a workers’ comp fraud case. He was sentenced to one year of deferred adjudication and ordered to pay a $300 fine.

Michael Douglas’ sentencing is the third in a case that involves his father, Howard T. Douglas, III, M.D.; his sister, Barbara A. Douglas; and their company, Western Medical Evaluators.

Texas Mutual said Michael Douglas presented false testimony on matters relating to the investigations of his father, sister and the company.

Western Medical Evaluators, and Howard and Barbara Douglas were indicted in 2010 on charges that they overbilled Texas Mutual for the time taken to perform functional capacity evaluations.

Howard Douglas was sentenced in February 2013 and ordered to pay $98,411 in restitution to Texas Mutual, in addition to a $500 fine, court costs and other fees. Western Medical Evaluators was fined $1,000.

The court also ordered Howard Douglas to report his conviction to the Texas Medical Board and to cease performing or billing for functional capacity evaluations and designated doctor examinations. Douglas’ motion for a new trial was denied.

Barbara Douglas was sentenced in February to 10 years’ probation and ordered to pay $81,368 in restitution.