Exclusive Investigation: Steward Health System Spied on Critics, Paid Billions in Intelligence Bills
Corporate Espionage Uncovered at Steward Health System
A shocking investigation has revealed a web of corporate espionage and deceit at Steward Health System, which allegedly spent millions of dollars on private spy firms to gather intelligence on critics and competitors.
Invasive Surveillance Tactics Used
The probe, led by the Organized Crime and Corruption Reporting Project (OCCRP), reveals that Steward paid two firms, CT Group and Audere International, to target individuals, including a former employee and a critic, with invasive surveillance tactics. These tactics included:
- Following people
- Conducting surveillance on someone
Experts say that these tactics are beyond what is ethically permissible in business intelligence. “Following people, surveilling someone, that’s beyond the lines,” said Ira Winkler, chief information security officer at CYE Security. “It could be considered harassment.”
Financial Records Show Prioritization of Intelligence Bills
Financial records show how Steward charged private spy costs to its Malta subsidiary, Steward Malta Management Limited, which received funding from the Maltese government. Leaked invoices reveal that:
- CT Group was paid £207,000 (approximately $254,000) by Steward Malta Management for intelligence work in 2022.
- Audere International was paid via Steward’s US headquarters and later reimbursed by the company’s Malta subsidiary.
Financial documents also show that Steward prioritized its intelligence bills over other critical expenses, including unpaid vendors. In one instance, an executive pushed to have an Audere bill of $143,945 paid immediately, despite the company facing financial difficulties.
Questions Raised About Corporate Espionage and Priorities
The investigation raises serious questions about the use of corporate espionage and the priorities of a healthcare system. “Former and current employers should not leverage their access to data to obtain compromising or sensitive material about the personal lives of employees that could be misused for ulterior motives,” said Mary Inman, a lawyer and whistleblower expert.
Response from Steward Health System
Steward Health System has declined to comment on the allegations, but its lawyers maintain that any suggestion of unlawful conduct is false. The company’s financial struggles culminated in bankruptcy earlier this year.
Investigation Conducted by OCCRP and Partners
The investigation was conducted by OCCRP, with contributions from the Boston Globe and Times of Malta. Data expertise was provided by OCCRP’s Data Team, and fact-checking was provided by the OCCRP Fact-Checking Desk.