Texas DA Suspends Funding Agreement With Texas Mutual

The Travis County District Attorney’s office in Texas says it is suspending an agreement with a private insurer that had allowed the company to pay prosecutors to pursue its fraud cases.

District Attorney Rosemary Lehmberg said in a statement this week that an agreement between her office and Texas Mutual Insurance was up for renewal Oct. 1.

But she said it would be suspended while her office explores “how to continue our important work in the area of workers’ compensation insurance fraud.”

A joint series by the Austin American Statesman and Texas Tribune detailed the unusual agreement between Lehmberg’s office and Texas Mutual. The firm provided funding for prosecutors who investigated fraud cases allegedly committed against it.

Lehmberg reiterated that the agreement is legal. But it nonetheless raised questions among some state lawmakers.