NAME CHANGE CAN’T HIDE FRAUD

A Travis County District Court found that a Houston company changed its name several times while trying to avoid prosecution for premium fraud, according to Texas Mutual Insurance Company. A.C. Lath & Plastering Inc., owned and operated by Martin Geserick and Kevin Ball of Houston, was directed to pay $450,000 in restitution to Texas Mutual as part of a plea bargain agreement. The prosecution contended that Geserick and Ball transferred employees from one company to another and deliberately misrepresented its payroll to Texas Mutual in order to gain workers’ compensation coverage at a lower premium. The company originally applied for workers’ compensation coverage under the name Atlantic Partners L&P Trust. In subsequent years, Geserick and Ball changed the company name to Atlantic Partners, then to Atlantic Contractors Inc. When Texas Mutual auditors attempted to review the companies’ payrolls, Geserick and Ball refused to provide the necessary records. Texas Mutual investigator Marti Rickard ultimately discovered two other companies, Stone Cast Inc. and A.C. Lath & Plastering Inc., during her investigation. The evidence suggested that Geserick and Ball were trying to develop other entities to avoid prosecution of premium fraud. Rickard credits the “excellent work of the Travis County DA’s office” for securing the restitution. Travis County Assistant District Attorney Donna Crosby handled the prosecution.

Topics Texas Fraud