Federal Lawsuit Challenges Comptroller’s Vetting Tactics
The Texas Comptroller of Public Accounts is defending a federal civil rights lawsuit after using third-party research to delay the admittance of several Islamic private schools into the state’s Education Savings Account program. Legal filings and deposition testimony reveal the agency vetted nearly 50 schools for alleged ties to extremist groups or the Chinese Communist Party. The process relied, in part, on research provided by Sam Westrop, a commentator who has previously faced libel judgments for false terrorism allegations.
Targeted Investigations and External Consultants
While the Texas Comptroller’s office initially described the vetting process as a routine review of school accreditations, legal documents from a lawsuit filed in March show a more targeted effort. According to a deposition taken in May, Murl Miller, the comptroller’s chief counsel for general litigation, confirmed the agency hired two third-party investigators—Reuben Katz and Lara Burns—to examine specific schools.
The investigation focused on nearly 50 private institutions identified as having potential links to radical Islamic organizations or the Chinese government. This list was compiled using input from various sources, including congressional hearings, a regional Homeland Security Task Force, and the RAIR Foundation. The comptroller’s office also accepted research from Westrop, who is currently employed by the Texas Public Policy Foundation.
A History of Discredited Claims
The use of Westrop’s research became a focal point of the legal challenge. Court records from a decade ago show a British court ordered Westrop to pay more than $173,000 in libel damages after he falsely labeled the founder of an Islamic TV channel a “convicted terrorist.” In that case, the judge noted there was “no evidence to support the allegation of terrorism.”
During his May deposition, Miller acknowledged he did not perform a background check on Westrop before the agency acted on his research. When asked if the investigators hired by the state had informed him of the previous libel judgment against Westrop, Miller replied, “No, they did not.” Despite this, Miller testified that he personally viewed Westrop as “credible.”
Plaintiffs Seek Class-Action Standing
Four Islamic schools initiated the lawsuit after their applications were delayed or initially denied. Although the comptroller’s office has since granted these schools entry into the voucher program, the plaintiffs are continuing to pursue class-action status. Attorneys for the schools argue that the state’s actions constituted religious discrimination and that the comptroller’s office requires judicial oversight to prevent future bias.
“Religious liberty is not a temporary pass issued after a lawsuit,” said Eric Hudson, an attorney representing the Islamic schools. “We’re pressing on so equal treatment is the rule — not an exception granted under pressure.”
The comptroller’s office has moved to dismiss the class-action request, arguing that because the schools were eventually approved, the issue is moot. State lawyers maintain that the agency’s actions were consistent with its responsibility to ensure public funds are not directed to institutions with ties to extremist groups.
Internal Friction and Disavowed Allegations
The investigation also highlighted internal friction within the state government. In March, acting Comptroller Kelly Hancock wrote to Attorney General Ken Paxton, urging him to strip the Houston Quran Academy of its charter, citing alleged ties to the Muslim Brotherhood.
In his deposition, Miller distanced the agency from the letter, stating, “There’s a lot of mistakes and misstatements in this particular letter,” and adding that the communication was a “surprise to all of us.” The comptroller’s office confirmed that its own internal review ultimately found the allegations of terrorist ties against the schools to be inaccurate.
The case remains ongoing as the court weighs whether to certify the class-action lawsuit, which would establish a legal precedent for how the comptroller’s office handles the vetting of private schools in the future.
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