Business Owner Charged with Felony Theft and Fraud in Insurance Scheme

Emmanuel Torres Cruz, owner of “Dr. Taxes” in Valdosta, Georgia, was indicted for stealing workers’ comp premiums from his small-business clients.
As a tax preparer, he posed as an insurance agent, then collected money for insurance policies, and then pocketed the cash and handed out fake certificates.
The scam came to light when owners tried to file claims and discovered the policies didn’t exist.
Cruz faces felony fraud and theft charges, and having to repay everything he stole.

A Washington, D.C. construction company, Brothers Mechanical Inc., agreed to pay $1.5 million after illegally labeling hundreds of workers as independent contractors.
By misclassifying them, the company dodged its legal duty to carry workers’ compensation insurance, leaving injured employees with no coverage for medical bills or lost wages.
The settlement forces Brothers Mechanical to pay $500,000 directly to the cheated workers and $1 million in penalties to the District.
Going forward, the firm must properly classify workers and buy required workers’ comp coverage.

Texas Contractor Dodged $170K in Workers’ Comp Premiums

Cristino Tapia Castaneda, a Texas drywall contractor faces three felony counts of workers’ compensation fraud after hiding $1.2 million in payroll from 2020–2023, dodging roughly $170,000 in premiums.
He lied about his employees’ wages to gain an unfair advantage in winning local contracts. This deception left injured workers at risk of not receiving enough insurance money to cover their medical bills and lost wages.
The Texas Department of Insurance announced the case on December 9, 2025, after uncovering the scheme during a routine check, leading to last month’s indictment. Castaneda, who owns Texana Drywall Construction, faces up to 10 years per count plus restitution.