The owner of an Austin, Texas, restaurant and her manager have been indicted for their alleged role in a $350,000 workers’ comp fraud scheme, the Texas Department of Insurance announced Tuesday.
In 2016, after an employee was injured while using kitchen equipment, Allison Clem, manager of la Barbecue, and her wife, LeAnn Mueller, who owns the business, worked to fraudulently and successfully obtain workers’ compensation, according to the department.
Specifically, four days after the incident, Clem contacted Paychex Insurance to obtain workers’ compensation, something the restaurant had been without since November 2014.
According to a fraud unit investigation, Clem did not disclose his employee̵7;s injuries to the agent but asked for the new policy to be updated to July 1, 2016, three weeks before the employee was injured. Mrs. Mueller then submitted a signed application for coverage, claiming the company had no prior losses and that the policy was approved by Travelers Casualty Insurance Company of America, which eventually paid $350,000 in medical and compensation costs for the employee’s injury.