Follow-up: Travis County Prosecutor-For-Hire Deal with Texas Mutual Ins. Co. Postponed
A controversial agreement between the Travis County District Attorney's Office and Texas Mutual Insurance under which the company pays prosecutors to pursue its fraud cases will be suspended — at least for now, officials said Wednesday.
The decision comes after a joint Austin American-Statesman and Texas Tribune series exposed the unusual and cozy arrangement, which sparked concern and objections by some lawmakers and county leaders.
District Attorney Rosemary Lehmberg said in a statement that a contract between her office and the mega-insurer — set to be renewed Oct. 1 — will be placed on hold. The insurer will continue to fund the four-person fraud unit handling Texas Mutual's cases through the end of the year "to avoid unnecessary hardship" on the county, the company said.
While pointing out that the agreement is legal, "nonetheless, understanding the perception questions that have been raised, my office is exploring how to continue our important work in the area of worker's compensation insurance fraud," Lehmberg said.
Read more: http://www.texastribune.org/2015/09/30/prosecutor-hire-deal-postponed/
Earlier threads:
Justice for hire? Giant insurer pays government lawyers to pursue fraud charges September 9, 2015
Follow-up: Officials Want Review of Privately Funded Prosecutions September 14, 2015
Follow-up: Travis County Can't Stop Privately Funded Prosecutions September 23, 2015
