Texas Business Owner Sentenced for Workers’ Comp Fraud, Tax Evasion

Texas Mutual Insurance Co. reported that a Travis County district court sentenced Gary C. Quintinsky of Houston to a two-year prison term for workers’ compensation fraud-related charges. Upon completion of his state prison term, Quintinsky will serve a 42-month federal prison sentence for tax evasion.

Quintinsky, who operated United Crane Inc. and multiple related companies, was indicted in March 2009 for his role in concealing payroll and employees from Texas Mutual Insurance Co. from Aug. 16, 2001, to Oct. 11, 2004.

Because workers’ compensation insurance premium is based, in part, on payroll, this type of scheme results in an employer being charged a lower premium than it actually owes. By hiding payroll, an employer can gain an unfair advantage over competitors.

In 2007, a Travis County jury awarded Texas Mutual more than $5 million in actual damages and $2.5 million in punitive damages in a civil judgment against Quintinsky. This case was the largest premium fraud case in Texas Mutual’s history.

Source: Texas Mutual Insurance Co.