Cristino Tapia Castaneda, owner of Texana Drywall Construction, is set to appear in Travis County’s 427th District Court on February 12 to face three counts of fraud totaling $170,000.
On November 8, 2024, a grand jury handed up an indictment against Castaneda on a charge of Securing Execution of Document by Deception, a second-degree felony. Charges against the company include Insurance Fraud and Fraudulently Obtaining Worker’s Compensation Coverage, both state jail felonies.
The Texas Department of Insurance, Division of Workers’ Compensation’s Fraud Unit uncovered the alleged scheme, which began in 2014 and continued through 2024.
Castaneda and his company allegedly deceived multiple workers’ compensation insurance providers to obtain coverage for work on large, high-profile Austin-based construction projects and falsified payroll information to avoid paying accurate premiums.
The insurance carriers involved are Texas Mutual and National Specialty Insurance.
If convicted of felony fraud, Castaneda could face two to 20 years in prison, a fine of up to $10,000, and court-ordered restitution. If found guilty of the two state jail felonies, the company could be ordered to pay restitution and up to $20,000 in fines.
Individuals who suspect workers’ compensation fraud are encouraged to report it by calling our Workers’ Compensation Fraud Hotline at 844-FRAUD99 (844-372-8399) or visit www.tdi.texas.gov/wc/ci/wcfraudrptcnt.html#rptwcfraud.
For more information contact DWCExternalRelations@tdi.texas.gov.