Due to new funds and oversight from the Texas Legislature, prosecutors can now pursue workers’ compensation fraud cases without relying on an unusual and much-criticized funding deal between a private insurance company and the Travis County district attorney’s office. The issues began nearly two years ago when a joint report from the Austin American-Statesman and Texas Tribune uncovered an exclusive funding deal, which stretched back at least to the early 2000s. Under the arrangement, Texas Mutual paid millions to fund a four-person team to investigate and prosecute alleged “crimes committed against the company.” According to the Statesman, Texas will now fund the prosecutorial unit with a two-year, $675,000 appropriation. The money will come from a maintenance tax collected from workers’ compensation insurers.
Further coverage here.