Texas AG investigating insurance company for alleged spying, blackmail

• Texas Attorney General Ken Paxton announced an investigation into Superior Insurance for allegedly spying on lawmakers, journalists and private citizens using private investigators. The company’s CEO, Mark Sanders, was fired after admitting to using Medicaid funds for the surveillance.
• Paxton condemned the actions, vowing to uncover any illegal activity and hold responsible parties accountable.
• The company’s CEO said the private investigators were hired in years past but not recently.

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Texas Attorney General Ken Paxton announced Thursday an investigation into an insurance company accused of spying on and blackmailing lawmakers, journalists and private citizens.

According to a press release, the state is investigating Superior Insurance, which allegedly used private investigators to conduct surveillance and gather confidential information. Paxton’s office said the individuals targeted had pending insurance claims against Superior.

Controversial testimony

Superior’s CEO, Mark Sanders, was fired one day after testifying before the Texas House Committee on the Delivery of Government Efficiency. During the hearing, Sanders admitted that the company used Medicaid funds to hire private investigators to probe the lives of some Texans.

“This is insane that this is the kind of thing the state government committee has to sit through,” State Rep. Ellen Troxclair said. “That this is the kind of issues that we’re dealing with because we don’t have companies that take responsibility for the taxpayer money that they are awarded and do right by the Texans who have paid for it.”

Sanders asserted that the private investigators were hired years ago but not recently. He also claimed the information gathered by the investigators was nothing more than public information already available, according to the Texas Tribune.

“The allegations concerning Superior’s actions, such as actions that were characterized as potentially blackmailing lawmakers to secure state contracts and surveilling private citizens to avoid paying legitimate claims, are deeply troubling,” Attorney General Paxton said in a press release. “I will get to the bottom of this, uncover any illegal activity, and hold bad actors responsible. Justice will be served.”