La Grange, Texas church was the victim of an embezzlement scheme

 A church is one of the last places one would expect a crime to happen — but it does happen. In this case, it was the First United Methodist Church in La Grange, Texas. 

According to the arrest warrant, Marsha Pyle is accused of embezzling approximately $18,000 dollars from the church. 

Pyle had been in charge of the finances for the church from mid-2015 to Aug. 31. When the new bookkeeper took over, she noticed some irregularities.

Notably, two sets of duplicated checks totaling more than $7,000. 

The church called the police in La Grange and the investigators say Pyle told them she wrote herself a check in the amount of $8,100. 

Pyle was charged with theft in early December, and since the victim was a church organization, charges carry felony weight. 

Pyle pleaded guilty to get a reduced sentence:  five years probation and she is ordered to pay restitution. 

Church Secretary Embezzles More Than $225,000 from Church

A former church secretary from Clovis will spend the next nine years in prison for embezzlement.

Earlier this year, Alice Phillips was charged with 136-counts of embezzlement but pleaded guilty to one count.

Phillips was accused of writing checks from multiple church accounts to herself.

In total, police say they found where Phillips took more than $227,000.

Documents show that the money was used for vacations, to start a retirement fund, and other untraceable spending.

McKinney woman pleads guilty in university embezzlement scheme

A McKinney woman has pleaded guilty to federal theft charges related to a university embezzlement scheme, the U.S. Attorney’s office announced this week.

Heather Elizabeth Mercado, 42, pleaded guilty Monday before U.S. Magistrate Judge Christine A. Nowak of the Eastern District of Texas.

According to information presented in court, from December 2014 to April 13, 2015, Mercado was employed by the University of Texas Southwestern Medical Center in Dallas as director of talent acquisition with the Human Resources Department. Mercado also controlled and operated a company, Alliance Consulting Partners (ACP), purportedly in the business of hospital staffing. 

Mercado devised and executed a scheme in which she represented to UT Southwestern Medical Center that ACP recruited nurses and other personnel to work at UT Southwestern, thereby leading to fraudulent invoices causing UT Southwestern Medical Center to pay ACP more than $483,000, according to authorities. 

Mercado was indicted by a federal grand jury Jan. 13 of this year. She faces up to 10 years in federal prison. Her sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing date had not been set as of late this week.

The Internal Revenue Service-Criminal Investigation and UT Southwestern investigated the case, which was prosecuted by Assistant U.S. Attorney Chris Eason.

Hearing set in BISD's Lambert fraud, conspiracy case

A hearing to determine how much money the federal government says former Beaumont ISD assistant superintendent Patricia Lambert stole from the school district has been set for Feb. 22.

The government asserts Lambert stole about half a million dollars, but she claims the amount was a lot less, according to John M. Bales, U.S. attorney for the Eastern District of Texas.

Lambert, 61, pleaded guilty in December to one count of fraud on programs receiving federal funds and one count of conspiracy to submit false statements concerning standardized test scores. She had been charged with four counts of fraud and one count of conspiracy.

In exchange for her guilty plea on one fraud count, the government agreed to drop the three other fraud charges and agreed to a prison sentence of up to three years and four months, Bales said.

The amount Lambert must pay - including restitution, forfeiture of assets and possible fines - will be based on the total the court determines prior to her sentencing.

She faced a maximum of 15 years in federal prison for the two charges to which she pleaded guilty.

The amount federal prosecutors allege Lambert stole from the district was calculated based on what she gained by diverting business to her son; stealing from unaudited booster club funds; overbilling students dual-enrolled in higher-education programs and pocketing the differencel and other unexplained cash deposits, according to Bales.

The indictment accused Lambert, who retired in April 2014, of embezzling more than $750,000. Bales has said that the goverment determined only half of the $480,000 channeled to her son's printing business could be classified as fraud, which lowered the amount to about half a million.When she was principal of Central High School and later as assistant superintendent, Lambert gave most of the campus' printing business, including banners, pamphlets, football programs and instructional materials, to her son, according to a court document she signed called a factual basis and stipulation.

Bales said the government agreed not to charge Lambert's son as part of her plea deal.

Besides prison time, Lambert faces fines of up to $250,000 for each of the two counts and a total of three years of supervised release at sentencing.

Lambert's plea to the fraud charge covered count one of the indictment, for the year 2010. Counts two through four of the indictment included the same charges for each of the next three years.

Bales said the government's estimate of the amount of Lambert's fraud covers all four years, but that restitution will be based only on 2010, the period covered in the first count of the indictment.

By pleading guilty to one count of fraud instead of all four, Lambert reduced the prison time she faced at sentencing. Each fraud count carried a maximum of 10 years.

Lambert also pleaded guilty to conspiracy to make false statements about her involvement in a scheme to cheat on standardized tests. Conspiracy carries a maximum sentence of five years.

Woman sentenced in church embezzlement case in Texas

A woman charged with taking thousands of dollars from the church her husband pastored was sentenced today.

Samantha Webb was sentenced to 45 days in the county jail and five years probation. A few members from the congregation were at the sentencing and tell us how the church has moved forward.

"When her and her husband left our bank account was minus," Compassion Church member James Abernathy said.

Abernathy says he is glad this case is finally over.
Webb is the now former ministers wife at Compassion Church, who in 2014 was caught stealing between $10,000 and $12,000 from the church.

"It put us in pretty bad shape because the church had no funds, we couldn't do anything at the church, any remodeling or upkeep or anything like that," Abernathy said. "It took us quite a while to get back on our feet."

Webb will now have to pay restitution equaling $10,000 to the church.
Abernathy says after Webb embezzled the money, the congregation of 25 dropped down to six people.
Today, they have nearly 40 members.

"We've just depended on each other, loving each other and just being strong with what we are supposed to do," Abernathy side.

"It is exciting to see how the Lord is building the church back to what it is," member Richard Eberhardt said.

He says he is glad the church can move forward.

"I'm not happy," Erberhardt said. "It is unfortunate that we are subject to making mistakes and we all have to answer for what we do both here and in Heaven."

Webb was also convicted for forging two checks in Choctaw County.
Her sentencing is set for next month.

BISD's Lambert says she is 'absolutely not guilty'

UPDATE: Patricia Lambert and Victoria Stweard have entered not guilty pleas to all charges against them. Both are free on $25,000 bonds.


A grand jury's indictments Wednesday of a former Beaumont ISD assistant superintendent and a former high-school teacher brought the number of people charged with federal crimes to 10 in an ongoing probe into a culture of corruption that plagued the district for years.

Former Assistant Super-intendent Patricia Adams Lambert embezzled more than $750,000 in BISD money by diverting business to a relative, using a high school booster club as a slush fund and stealing from students dual-enrolled in higher-education programs, federal prosecutors alleged Wednesday.

Along with former Central High School teacher Victoria Steward, Lambert also is accused of changing students' answers on high-stakes standardized tests over the course of five school years, affecting an entire generation of Central High students, U.S. Attorney John M. Bales said.

A grand jury yesterday hit Lambert on four counts of fraud on a program receiving federal funds and one count of conspiracy. Steward also was indicted on one count of conspiracy.


A fraud conviction carries a maximum sentence of 10 years. The maximum punishment for conspiracy is five years.

Court appearance

Lambert and Steward are scheduled to appear separately in federal court before Magistrate Judge Keith Giblin at 10:15 a.m. today.

Alphonso Anderson, a Houston-based attorney representing Lambert, did not respond to a message left at his office Wednesday afternoon.

Lake Charles-based attorney Todd S. Clemons, who is representing Steward, said his client has maintained her innocence for the year that he has represented her.

"(Steward) is not guilty of that one (charge), and I am going to vigorously defend her," Clemons said.

Steward, 31, is currently a high school teacher in Lake Charles, Clemons said.

Their indictments are the latest salvo in an ongoing investigation into BISD corruption that previously resulted in convictions of fraud against the district's highest-ranking financial officers, the president of West Brook High's booster club and a former warehouseman, his wife and a friend.

Criminal proceedings are pending in state court in the cases of former BISD contract electrician Calvin Walker and former purchasing agent Naomi Lawrence-Lee, who were indicted for felony theft and fraud, respectively, last year.

The Texas Education Agency in July 2014 replaced BISD's elected board of trustees with an appointed board of managers, who subsequently ousted Superintendent Timothy Chargois amid the budget crisis they inherited.

Lambert's rise and fall

Lambert, 60, retired from BISD last April amid allegations she took advantage of lax oversight to funnel hundreds of thousands to companies started by her son through no-bid purchases.

Federal prosecutors secured a fraud indictment on those allegations, asserting that Lambert assisted a "close family member" in becoming an authorized vendor. Lambert then directed that all printing work be done through two companies - "Designergy" and "Printica" - owned by that family member, the indictment says.

The relative, who was the vendors' only employee, would order the work done by local companies and mark up the price by as much as 300 percent before invoicing the district, the indictment says. In total, the scheme netted $480,000, prosecutors said.

Before joining BISD as a teacher in 2002, Lambert was convicted of extortion in Louisiana after accusations that she orchestrated a kick-back scheme with educators for whom she secured pay raises and job promotions, Jefferson County District Attorney Bob Wortham said.
Lambert rose rapidly through BISD's ranks. Two months after she was hired as a teacher, she became assistant principal at Vincent Middle School. Two years later, she was promoted to principal and assigned to French Middle School. In 2006, she was assigned to Central, and in 2012, she was promoted to assistant superintendent.

While at Central, Lambert took control of the school's booster club fund. She wrote checks from the club payable to her children, to cash and to herself, all of which were deposited in her personal account, the indictment alleges.

To build the club's fund, which was not subject to BISD oversight or auditing, Lambert diverted money from other accounts to the booster club, according to the charges. Other sources included fees students paid for transcripts and donations from private individuals or businesses for scholarship purposes, the indictment says.

Lambert is further accused of diverting fees students paid to enroll in dual-enrollment programs offered by Lamar Institute of Technology and the University of Texas. Aside from sending that money to the booster club fund, Lambert is accused of increasing the price of enrollment in the UT program from $275 per student per year to $1,000 per student per year, the indictment says.

"Additionally, Lambert often failed to reimburse BISD for the tuition costs," the indictment says.

Test score allegations

Those accusations are separate from charges that Lambert, with Steward, changed students' answers on state tests over a five-year period.

Lambert directed teachers to improve test scores "by any means necessary," the indictment says. Lambert organized meetings in which she and subordinates would change the answers, according to the indictment.

The scores are used to judge educators and school performance as well as to determine whether students can pass a grade,

Steward "did a large portion of the actual test changing" and recruited other teachers to assist her, the indictment says. Steward is accused of providing teachers with stacks of tests and answer keys. The teachers would erase incorrect answers and replace them with the correct responses, according to the indictment.

In 2013, a parent filed a lawsuit that claimed her child was unfairly denied becoming class salutatorian because Lambert manipulated grades. Lambert responded by saying the parent, a former Central High principal, had also manipulated grades.

Bales, the chief federal prosecutor, described grade and score manipulation as a "systemic" problem at Central High. Other teachers involved with changing the test scores are not likely to be prosecuted, he said, because he feels Lambert and Steward were "the decision-makers."

Investigation continues

A federal-state-local task force headed by Bales' office is continuing to investigate white-collar crime in BISD and elsewhere, but the chief prosecutor said he could not provide a list of targets or a timeline for more charges.

Texas Education Agency spokeswoman DeEta Culbertson said the state's investigation into BISD cheating allegations is ongoing. Generally, the state will not complete an investigation until legal proceedings are complete, she said.

Typically, in cases of teacher-involved cheating on standardized tests, the state will attempt to revoke a teacher's certification through the state board for educator certification, Culbertson said.

BISD spokesman Ron Reynolds said the current administration will cooperate with any further investigations into potential misconduct.

"BISD wants to assure parents that the educational programs for students will not be impacted throughout the pendency or outcome of the investigation," Reynolds said

Woman sentenced in embezzlement case in Texas

 The former business manager of a Central Texas school district has been sentenced to two years in federal prison for embezzling more than $500,000 from the district.

Patty E. Smith was sentenced Friday in federal court in Austin and ordered to pay restitution for stealing the money from the Lohn school district, about 60 miles east of San Angelo.

Federal prosecutors said in a statement that the 58-year-old Smith stole federal money designated for the district.

She pleaded guilty in June to charges that include one count of theft from an organization receiving federal funds.

She acknowledged that she embezzled from the district from 2006 to 2012 and used the money for her personal benefit.

2 former Beaumont school district employees indicted in embezzlement investigation in Texas

A former supervisor for a Southeast Texas school district has been accused of hiring his wife and a friend in a payroll scam.

A federal grand jury on Wednesday indicted three ex-employees of the Beaumont Independent School District. Daryl Glenn Johnson, Erin Gipson Johnson and Kailyn DeShondra Pete are charged with conspiracy and fraud upon programs receiving federal funds.

Prosecutors say Daryl Johnson since 2009 was the district's warehouse supervisor. He allegedly put his wife and a friend on the payroll as temporary employees and approved their bogus timesheets. Erin Johnson received nearly $194,000. Pete was paid $90,000.

No publicly listed phone numbers for the Johnsons or Pete could immediately be located Thursday. Prosecutors say the three suspects were not immediately arrested. Attorneys for them did not immediately return messages.

Superintendent "aware of alleged embezzlement" in Booster Club

The possibility of $17,000 missing from the West Brook Booster Club funds and whether the club's former president had a hand in what might have happened to the money remained a question Monday as booster club members met behind closed doors at the interim president's home.

The interim president, Joey Hilliard, a candidate for Beaumont school trustee in District 7, on Monday had accused now former booster president William "Bo" Kelley Jr. of being responsible for the $17,000 in booster club money that Hilliard said was missing.

Hilliard had said the club treasurer discovered the club's account held just $500. Hilliard said Kelley had told him that he had taken it.

The Enterprise attempted to contact Kelley several times at his cell phone number, at his office telephone number and personally at his home. Kelley did not return the requests for comment despite voice mail messages.

Hilliard put off interview requests, saying he was "in a meeting." He said the booster club meeting Monday was "private" and would take place "at an undisclosed location."

The University Interscholastic League's guidelines are specific about booster clubs and their relationship with the schools they are supposed to serve.

"The superintendent or a designee who does not coach or direct a UIL contest has approval authority over booster clubs and should be invited to all meetings. All meetings should be open to the public," the UIL guidelines state.

Nakisha Myles, Beaumont school district spokeswoman, said Superintendent Timothy Chargois is "aware of alleged embezzlement of funds" and will be "rolling a path forward to protect funds raised for the students of BISD."

BISD problems rooted in unprofessional system in Texas

Two Beaumont Independent School District employees could face up to 10 years in prison after being indicted on federal charges of embezzlement Wednesday.

Finance Director Devin Wayne McCraney, 35, and former Comptroller Sharika Baksh Allison, 43, were named in a 19-count indictment charging them with conspiracy and 18 counts of fraud for allegedly devising schemes in which they embezzled more than $4 million using 18 separate wire transfers to bank accounts under their personal control, according to a press release from the office of John M. Bales, United States Attorney for the Eastern District of Texas.

“McCranie and Allison are crooks and should be held accountable,” Bales said at a press conference at the U.S. Attorney’s office, 350 Magnolia Street, on Wednesday.

After receiving several tips, Bales said, FBI agents arrived at the BISD administration building Nov. 7 to investigate allegations that someone set up bogus accounts and diverted district funds. Agents also visited the homes of McCraney and Allison.

According to a 13-page indictment released by the U.S. Attorney’s office, beginning in 2010, McCraney — one of three BISD employees with the authority to make a wire transfer without the authorization of a second person — began wiring money from the district’s Bank of America account to three bank accounts under his control.

In an attempt to make the transfers appear legitimate, McCraney included notations on the transfer instructions such as “Workers Comp Special Funding” and “Tax Adjustment.”

McCraney was responsible for 13 fraudulent transfers totaling $2.7 million.

On April 27, 2012, the indictment stated, Allison registered under an assumed business name of “Milimann Consultants” — similar to Milliman USA, a company that provides BISD with yearly actuarial analysis of its self-insured workers compensation program. Between April 27, 2012, and Aug. 23, 2013, either McCraney or Allison made five wire transfers from BISD’s Bank of America account to a Capital One account owned by “Sharika Allison d/b/a (doing business as) Milimann Consultants.”

The indictment also stated that McCranie and Allison must forfeit “any property constituting or derived from proceeds obtained directly or indirectly as a result of the said violations.”

No trial date has been set for McCranie and Allison, but Bales said they will appear in court next week to ensure they understand the charges against them. After that, the next step is an arraignment, where they will formally enter a plea and the jury will set a deadline for motions to be filed.

Bales said a trial must occur within 70 days of the initial court appearance. But, he said, he doesn’t think the trial will take much time to reach a verdict — and that the verdict will include a prison sentence.

“They were caught red handed,” he said. “The jury should resolve charges pretty quickly — and with the amount of money stolen and the abuse of trust committed, they’re going to prison.”

Bales said there was no evidence of any other employees involved in a case he called “breathtaking in scale and very disturbing in boldness.” He added that he hoped the district filed a claim to regain its funds.

“BISD is the victim,” he said.

A statement released by BISD communications specialist Nakisha Myles said that the district has been made aware of the indictments, and has and will continue to fully operate with all agencies involved.

“Our primary achievement is and always has been the educational achievement of our children,” the statement said. - See more at: http://www.panews.com/local/x1956154433/Two-BISD-employees-indicted-on-charges-of-embezzlement#sthash.uPJOfU1y.dpuf

The shocking charges of multi-million-dollar embezzlement at the Beaumont ISD go way beyond the actions of two employees. It is clear this happened - or dragged on for years - because of a sloppy, unprofessional mindset that permeates the district's leadership.

The district has had one auditor for 11 years, when the clear accounting guideline is to change auditors every three years. With a new set of eyes looking at the BISD's books, the alleged fraud might have been detected sooner.

The amount of money allegedly embezzled is hard to determine because BISD has not reconciled its bank accounts since November 2012. Again, that should be done quarterly at the least, and preferably monthly.

It's mind-boggling to think that blunders like this could occur in a major public school district. Yet it's more understandable in a district that often treats tax dollars like Monopoly money, as evidenced by trustee's refusal to claw back $2 million from the Calvin Walker settlement. Or in a district that hires someone like Naomi Lawrence-Lee as assistant director of finance and purchasing after she resigned under pressure as the Jefferson County purchasing agent for misuse of public funds. Or in a district that often doesn't require basic professional qualifications, as in the case of a chief financial officer who isn't a certified public accountant.

In a district like that, embezzlement was a crime waiting to happen. Potential law-breakers could think their offense won't be detected - or worst of all, that some officials simply might not care.

This district desperately needs a forensic audit - and leaders who care deeply about doing the right thing the right way all the time.

RUDY MATA PLEADS GUILTY IN UNIVERSITY MEDICAL CENTER EMBEZZLEMENT CASE IN TEXAS

A San Antonio man has pleaded guilty to mail fraud in a case related to the conviction of a former University Medical Center vice president.

Rodolfo Reyes Mata, also known as Rudy Mata, pleaded guilty to one count of mail fraud and aiding and abetting.

Mata submitted 15 fraudulent invoices to UMC for ATAM Technology Solutions, causing the hospital to pay nearly $55,000 to the fraudulent company.

Former UMC Vice President Greg Bruce pleaded guilty in June to a similar offense.

Bruce admitted that he conspired with Mata to submit fraudulent invoices for ATAM Technology Solutions and B.R. Media Monitoring, a fake company devised by Bruce, causing UMC to pay nearly $682,000 on invoices to these fraudulent companies.

The fraudulent activity ran from June 2007 through December 12, 2011.

The funds were used, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.

Overall, UMC identified approximately $735,000 that was embezzled.

Both Mata and Bruce face up to 20 years in federal prison, a $250,000 fine, and restitution.

Ex-University Medical Center in Texas administrator Greg Bruce facing federal mail fraud charge

A former University Medical Center administrator who resigned 18 months ago amid an FBI investigation is facing a federal mail fraud charge, according to a document filed in U.S. District Court.

Federal prosecutors filed a one-count information on Monday, June 3, alleging that Robert Gregory “Greg” Bruce stole more than $9,700 from the hospital in 2011.

Bruce said he will appear in U.S. District Court Thursday to enter a guilty plea.

Prosecutors filed an information directly with the court as an alternative to taking a matter to the grand jury.

In a statement released Monday afternoon, UMC officials said results of the internal audit that resulted in Bruce’s December 2011 resignation indicated he might have been embezzling from the hospital over a period of several years.

“UMC identified approximately $735,000 that Mr. Bruce is believed to have embezzled,” the hospital’s written statement said.

Bruce issued a statement late Monday afternoon saying that he came forward and admitted to stealing money.

“Shortly before Christmas 2011, I informed my employers at UMC I had made serious mistakes and took funds which were not mine,” he said. “I resigned and voluntarily notified the US Department of Justice and Federal Bureau of Investigation about these actions.”

Bruce said he is continuing to cooperate with the Justice Department and FBI in their investigation.

“While I have disappointed many, I hope through full cooperation and candor with the Justice Department and others, I can begin repairing the damage I have caused,” he said.

According to the prosecutors’ information, Bruce created and submitted an $9,701.45 invoice on Jan. 3, 2011, from a fictitious company, B.R, Media Monitoring, to be paid by the hospital. UMC prepared the check and sent it to a post office box Bruce controlled on Jan. 12.

The loss was discovered in a internal audit in December 2011. David Allison, UMC’s president and chief executive officer, asked for Bruce’s resignation.

He was the hospital’s vice president for corporate services when he resigned.

The hospital’s leadership eliminated the position after Bruce resigned and divided the responsibilities among several directors and administrators, the statement said.

The statement also noted the hospital has increased its oversight of contract, vendor relations and credit card use.

Bruce joined UMC as a health unit coordinator in 1992 and was promoted several times before becoming vice president of corporate services in 2005.

According to A-J Media archives, Bruce served as 2005 board chairman of the local American Red Cross and was honored for his work with the organization when he was named 2005 Volunteer of the Year by the Lubbock Chamber of Commerce.

He also was sourced as chairman of ListenLubbock, a political action committee, in a 2007 A-J Media article, and as president of the Heart of Lubbock Neighborhood Association in a 2008 article.

South San Antonio Independent School District embezzlement results in prison in Texas

A former South San Antonio Independent School District secretary accused of embezzling football game revenues was sentenced to eight years in prison Thursday, despite a last-minute attempt to spread blame to the district's controversial ex-athletic director.
Several school board trustees and Superintendent Rebecca Robinson lingered inside the courtroom after the hearing to watch as deputies led Silvia Gallegos Neira, 58, away in handcuffs.
“It's been a long two years,” board President Rose Marie Martinez said, referring to a 2011 audit of athletic funds that eventually resulted in the criminal charge. “The precedent has been set here. If anybody's thinking of doing this in any other district, they better think twice because justice has been served here.”
Neira was indicted last year on charges of stealing $22,420 from the district over a three-year period, taking advantage of her position as the person who collected and deposited athletic event revenues.
She pleaded no contest to theft in April in exchange for an eight-year term. Because she arrived at court Thursday with a check for $11,000 to repay the district, prosecutors agreed to not call witnesses or argue against her as she asked state District Judge Maria Teresa Herr to let her serve the sentence on probation.
Although Herr denied the request, she did retain jurisdiction of the case — a strong indicator that the judge might consider altering the sentence to shock probation after Neira spends about six months in prison.
Neira admitted to the judge that she stole and said she intends to pay back the entire $22,420. But she wasn't the only person to have participated in the scheme, she said. She would drop off cash for then-athletic director Gary Durbon, the son of then-Superintendent Ron Durbon, she alleged.
“I tried very hard to get away from that office four different times, but I couldn't because I was told by his father ... I was never to leave there,” Neira said. “In that school district, you can't turn to no one without being threatened ... and retaliated against.”
District officials in attendance declined to comment on the claims.
Durbon has not been charged. He repeatedly has denied wrongdoing.
“In Texas, we need to corroborate what would essentially be accomplice witness testimony,” said Adriana Biggs, chief of the district attorney's white-collar-crimes division. “Absent that, we don't have a case. If there's information presented to us that ties Mr. Durbon to the theft, then certainly we would re-open the investigation.”

Former Edgewood PTA president accused of theft in Texas

Roughly $1,800 dollars has been drained from the Loma Park Elementary School PTA fund and the PTA's former president, Fabian Ybarra, has been accused in the theft.

"We did these fundraisers, we did dances, the kids they paid -- I mean, we bought snacks so they can buy them and it turned out to be a big thing for the kids," said Loma Park Elementary School Treasurer Sylvia Gonzales. "I called the bank and we spoke to one of the managers and they said he had done the electronic. It went to his personal account."

According to Gonzales, Ybarra had not been carrying his weight recently.

She said he was asked to step down a couple months ago, but refused.

A short time later, money that was held in a joint school account reportedly had been transferred to his personal account.

"I don't have the details on what the investigation was, but apparently this individual admitted to taking those funds," said Edgewood ISD spokesman Roland Martinez.

The money was supposed to help fund field trips and the fifth graders' end-of-year banquet.

"We're just going do the best that we can and the principal said that they'll put in the rest whatever they need," Gonzales said.

Ybarra was removed as PTA president following the incident two months ago and Gonzales said she hasn't seen him since.

"Once this was brought to our attention, we worked with our district police and, subsequently, with the legal system to bring charges and recovery and closure to this incident," Martinez said.

Martinez reports the district has turned the case over to the Bexar County District Attorney's Office to recover the roughly $1,800 that is still missing from the PTA fund.

The KSAT Defenders left messages for Ybarra Wednesday afternoon that were not returned.

Affidavit: University's CFO admitted embezzlement in Texas

A West Texas university has fired its chief financial officer amid accusations he used the school's money to pay off debts he and his wife incurred.
Wayland Baptist University in Plainview confirmed Thursday it has dismissed James E. Smith. An affidavit submitted with a lawsuit filed this week by the university says Smith admitted embezzling about $40,000 over a four-year period.
The affidavit says officials became concerned after a financial review of recent campus construction pointed to irregularities. Executive Vice President and Provost Bobby Hall says in the affidavit that Smith admitted his involvement and says he was unable to repay the university.
Smith was suspended in March and fired earlier this month. He had been chief financial officer since 2001.


University officials said in a court affidavit that Smith admitted to embezzling about $40,000 over a four-year period. According to the Lubbock Avalanche-Journal, Smith told Executive Vice President and Provost Bobby Hall that he had been using university funds to pay personal debts and that he didn’t have money to pay it back.

Hall’s affidavit said university officials began an internal investigation after a financial review of one campus building renovation and construction of Jimmy Dean Hall, a new men’s dormitory. The dormitory is named after a country music singer and television host popular in the 1960s now better known for the sausage company he founded in 1969.

Dean, who died in 2010, was born in born in Olton, Texas, and raised by his mother. He attributed his interest in music to singing as a child at Seth Ward Baptist Church in Plainview. He dropped out of high school to join the Merchant Marines in order to support his family, but always believed that education was a key to success.

Jimmy and Donna Dean originally gave $1 million to Wayland in 2008. In 2012, an additional $5 million was donated. Most of the money has been earmarked for a planned addition to the university museum to house Jimmy Dean memorabilia.

Jimmy Dean Hall is a three-story, 94,000-square-foot structure with 175 rooms and 300 beds that features the latest in “green” technologies and safety features. The dorm opened to students last fall. Wayland invited the public to an open house to view and tour the new facility April 28.

Wayland officials said their investigation is ongoing and that they will cooperate with police if criminal charges are filed.

Former banker Donnie Wright facing federal embezzlement charge in Texas.

A prominent former local banker is facing federal embezzlement charges after being accused of stealing from his employer — apparently through his church’s accounts — for more than three years.

The federal grand jury Wednesday indicted Donnie Wright, a top local executive with Bank of America, on one count of embezzlement of funds by a bank employee.

The indictment says only a sum of more than $1,000 was taken, and the theft took place between May 2006 and January 2010.

A lawsuit Community Baptist Church filed in September 2010 against Wright and Bank of America claiming civil theft, fraud and breach of fiduciary duty puts the loss at more than $375,000.

Kathy Colvin, a spokeswoman for the U.S. Attorney’s Office in Dallas, confirmed Wright’s identity, and said she could not comment further.

Wright could not be reached for comment.

It is unknown whether Wright has retained an attorney. Chuck Lanehart, who initially represented Wright in the church lawsuit, received the judge’s permission to withdraw from the case, saying in a pleading Wright had become uncooperative.

Wright is also in the middle of a divorce and is not represented by an attorney in that case, court records show.

He has not filed any documents in the matter and is the subject of a court order instructing him to respond to questions from his wife’s attorney.

Avalanche-Journal files indicate Wright had several titles reflecting increasing authority with the bank between 2006 and 2010, ranging from branch manager to local market president.

The time frame mentioned in the suit roughly coincides with the dates listed in the indictment.

That lawsuit contends Wright, a member of the church’s board of trustees, admitted to stealing from the church “over a lengthy period of time and concealing his activities.”

The suit says Wright admitted the embezzlement to church officials after the pastor’s paycheck was dishonored because the church’s primary operating account had insufficient funds.

According to the suit, Wright was the church’s banker, but was not authorized to sign the church’s checks.

He was, however, a signatory on certificates of deposit Bank of America issued to the church.

The suit says Wright had day-to-day control of the church’s business affairs from March 2006 to February 2010, which included reviewing bank statements and preparing financial reports for the church.

After Wright admitted to the embezzlement, the suit says, an investigation determined that, through his position as a bank officer, “systematically looted” the church’s accounts.

According to the suit, he made partial withdrawals from church certificates of deposit totaling more than $208,000, took almost $135,000 out of the church’s checking accounts through debit tickets, and negotiated checks for nearly $33,500, made out to himself and signed by people who were not authorized to sign church checks.

In 2011, the church dropped its claims against the bank and agreed to not refile, and later filed a motion to drop the suit against Wright, but with an option to refile at a later time.

According to court documents, Wright has not yet been arrested.

Wright, who grew up in East Lubbock, has been a prominent figure in African-American affairs in the community.

He has been a longtime officer and board member of the Martin Luther King Jr. Celebration Committee, and involved in local economic improvement efforts by connecting Bank of America with the East and North Lubbock Community Development Corp.

In 2009, the Lubbock chapter of Delta Sigma Theta, the African-American women’s sorority, honored him as man of the year for his work as a mentor to students at Parkway Elementary School and his involvement with the Martin Luther King Jr. Celebration Committee.

Former Bells PTO president admits embezzlement in Texas

From : http://www.kxii.com/

A local school board official is under fire after being accused of taking money from a school organization.

The Bells ISD superintendent announced that Jeannie Russell, who is the current president of the district's board of trustees, admitted to using money from the Parent Teacher Organization fund for her own personal use.
Karen Bounds has been part of Bells Parent Teacher Organization for nearly two years. Less than a week ago she was appointed president after the past president, who is also the current president of Bells ISD Board of Trustees, admitted to taking $2,000 from the organization.
"I was sad because a lot of parents worked very hard," said Bounds.
The news is still hard for Bounds to accept, especially since she along with several other parents worked around the clock, on their own time, to raise much-needed funds for children at the elementary school and other students in the district.
"We had a lot of cuts in the budget this last year, money is tight and short and so we need to have all these fundraisers to let the money go back in the Bells school district," said Bounds.
Bells ISD superintendent Joe Moore says the incident happened over the summer and that Russell has paid all the money back. But he says it's important for the community to know that PTO and the district are two separate entities since PTO operates under its own by-laws.
"That's two separate things and the PTO has nothing to do with Bells ISD and Ms. Russell's responsibility with it," said Moore.
Russell has since left PTO and resigned as secretary of the Athletic Booster Club. She has also submitted a letter of resignation from her position as President of the district's board of trustees.
Moore says despite the situation, Russell has been an asset to not only the school board but the community. Bounds says the PTO is now moving forward closing the old account, adding new board members and planning for the financial future of Bells ISD.
"Jeannie's done a lot of good for this school for Bells elementary and the high school, but we need to have checks and balances and that's what we're doing now is having those checks and balances in place," said Bounds.
District officials say the police have been contacted and they will continue the investigation. As of right now no criminal charges have been filed. Meanwhile the board of trustees will consider Russell's resignation at an upcoming meeting.

El Paso Schools Superintendent Lorenzo García out on bond: Board meeting slated for Thursday

FROM ELPASOTIMES.COM  -

El Paso Independent School District Superintendent Lorenzo García once proudly talked about his aspirations to become the state's commissioner of public education.




On Tuesday, it was unclear if García would even be able to keep his job leading the city's largest school district as he stood before a U.S. judge in a blue jail jumpsuit with handcuffs around his wrists and ankles.


García, 55, pleaded not guilty to federal charges of fraud and embezzlement.



His attorney said he plans to return to his job at the district today after being released for paying $5,000 of his $50,000 bond.



But school board president Isela Castañon-Williams said late Tuesday



night that she sent a message to García, through the district's attorney, asking that he take personal leave until after the school board meets Thursday to discuss his standing with the district.


García faces the possibility of federal prison time for a plan he allegedly devised with others to defraud the district upon becoming its leader five years ago.



According to a federal indictment, García allegedly began working to steer a $450,000 no-bid contract to someone with whom he had a personal relationship. He also had a personal financial interest in the company, the indictment said.



The Houston-based company appears to be Infinity Resources and Associates, which was run by Tracy Rose, according to documents obtained by the El Paso Times. The listed location for the business seems to be a private mailbox, not a physical address.



Ray Velarde, García's defense attorney, said his client plans to continue with his normal routine upon release. That includes immediately returning to work to lead the more than 60,000-student district.



"I'm confident that he'll be acquitted," Velarde said about García.



The attorney and García did not get into the specific charges in the case when they briefly addressed reporters as they were leaving the jail Tuesday night. A Spanish-language reporter asked García if he would like to make a comment for the 80 percent of the population of El Paso who speak Spanish.



García simply replied "Exactly."



Velarde then added, "At this precise moment, we are not prepared to make a statement regarding these allegations. They have not shown us any information that supports these charges."



García faces one count of conspiracy to commit mail fraud, two counts of mail fraud and one count of aiding and abetting theft from programs receiving federal funds.



Each mail fraud charge carries a penalty of up to 20 years in prison, the theft charge is punishable by up to 10 years in prison and a fine of up to $250,000 could be assessed if García is convicted.



García, usually a forceful speaker, had a softer tone as he replied "yes" and "yes, sir" when asked if he understood the charges against him.



As part of the conditions of García's bond, he was ordered to turn over his passport

remain in El Paso County and not have any weapons.


An officer with U.S. Probation and Pre-trial Services must also supervise García while he is out on bond.



The FBI claims that on Sept. 9, 2005, before García was hired at EPISD, he gave $5,000 to an unindicted co-conspirator with whom he had a personal relationship. About $4,000 from that payment was deposited into the bank account of the company run by the co-conspirator.



García took the helm of the El Paso district in February 2006. The indictment says that same month he allegedly persuaded the co-conspirator to try obtain a no-bid contract with the district by presenting itself as the only company that could provide such services and products.



The co-conspirator believed the contract to be worth about $100,000 but set the value of the services at $500,000 with the encouragement of García, according to the indictment.



In March 2006, García had district employees "devote their time and efforts to preparing to assist" the company in fulfilling the contract, and he got a lawyer to help create a template for the company that would exclude competition, the indictment said.



The co-conspirator, on or about July 6, 2006, submitted an affidavit claiming that the company was the only source for the products and services provided to the district, according to the indictment.



Documents obtained by the Times show that Rose signed and presented an affidavit that July 6 and presented it to the district. In the notarized letter, she said her company was the sole-source provider of specialized data-driven materials that would help boost student math scores in the state's standardized test.



An executive summary obtained by the Times for a July 11, 2006, school board meeting indicates that administrators asked trustees to approve a $450,000 contract for math materials and staff development from Infinity Resources and Associates. The indictment includes mention of an executive summary with the same date and amount.



EPISD sent two checks of $180,000 each to a Houston company on Aug. 4 and Aug. 18, according to the indictment.



The executive summary presented to school board trustees suggested that the district would pay the company $360,000 at the start of the contract in August. In return, the company was to provide the district with products for kindergarten through fifth grade and pay the company's travel costs for 18 trips to the district. The company would later receive an additional $90,000 for staff development, travel costs and services for middle schools and high schools.



School district officials did not return calls or emails seeking more information.



Some school board members also did not return phone calls. Others declined to comment on the issue and directed questions to Castañon-Williams.



Castañon-Williams said trustees are gathering information and the board will make decisions about García's future with the district at a meeting Thursday.



"At this point, our focus has to be making sure the business of the district moves forward," she said. "We will do what is right for the district. We make decisions based on solid information."



García served as a deputy superintendent in the Dallas Independent School District before he was hired as the leader of EPISD in December 2005. He officially took charge of the district two months later.



Garcia also served as an assistant and area superintendent at Houston's Spring Branch Independent School District.



Administrators on Tuesday sought to reassure community members that the district would withstand García's arrest.



Fort Bliss Garrison Commander Col. Joseph A. Simonelli Jr. said on his Facebook and Twitter accounts that he was contacted by Terri Jordan, the district's chief of staff. He called Jordan "the interim Superintendent" of the district.



"She wanted to express to me EPISD's commitment to educating our children as best as possible and promised her personal dedication to do so in this turbulent time," he said in the posts. "I have full faith and confidence in her and ask you provide the same."



The past year has been a rough one for the school district.



It has been under scrutiny from multiple investigations and audits by the Texas Education Agency, the U.S. Department of Education and the FBI.



The district also failed to get voter approval for a tax increase and will be shorted millions of dollars because of state budget cuts. It was, however, one of five districts in the county to receive a recognized rating on the state's accountability system.



"We're a recognized district steadily standing -- despite the many challenges we've had," Castañon-Williams said. "We're standing stronger than ever."



No administrators, friends or family were at the court on Tuesday. A district parent and Helene Solomon, a retired EPISD employee who is one of García's biggest critics, were present.



García's case has been assigned to Senior U.S. District Judge David Briones, but his next court date has yet to be set.

Former pastor arraigned on embezzlement charge in Texas

FROM The Ruidoso News Police -



District Judge Karen Parsons arraigned former Ruidoso minister Kevin Krohn Friday, set his bond and ordered him booked and released.




"The state is not opposed to a reasonable bond," Deputy District Attorney Reed Thompson said to Parsons.



Defense attorney Dan Bryant asked Parsons for a 10 percent posting of the bond.



"In this type of case restitution becomes an issue," Bryant said. "So I would ask the court for a 10 percent posting so those funds would be available for restitution later on, should that become necessary."



Bryant said this case has been pending for over 10 months, Krohn has been cooperating and the Krohns have a home in Ruidoso.



Krohn is charged with embezzlement of over $20,000 from the Lincoln County Ministerial Alliance, Shepherd of the Hills Lutheran Church and other area churches, a second degree felony, and with conspiracy.



Parsons ordered Krohn to post $1,000 to secure a $10,000 bond, and be photographed and fingerprinted by the Sheriff's Department, then released.



Thompson said earlier in the week that Krohn may have embezzled as much as $150,000, but the state only needs to prove that he stole $20,000 to make it a second degree felony. The conspiracy charge is a fourth degree felony.



Bryant and attorney Angie Schneider-Cook maintain that Krohn is innocent of the charges.



"We have faith that he will be exonerated by a jury of his peers," Schneider-Cook said.

Former Seguin Educational Foundation treasurer pleads in embezzlement case in Texas

FROM seguingazette.com  -

A woman charged with embezzling more than $30,000 from the Seguin Education Foundation has accepted a plea agreement that calls for her to serve 10 years probation and return the stolen money.




Kimberly Emard, 44, who had served as treasurer of the foundation, was indicted in November 2010 on a charge of theft of property, more than $20,000, less than $100,000, from a non-profit organization.



Theft of $20,000 to $100,000 ordinarily is a third-degree felony, but it escalates to a second-degree felony when the victim is a non-profit organization. A second-degree felony is punishable by two to 20 years in state prison and a fine of up to $10,000.



The plea agreement was signed June 23 by Emard’s attorney, David Eveld, and Assistant District Attorney Larry Bloomquist.



The agreement calls for Emard to serve 10 years probation with deferred adjudication, a maximum of 30 days in jail as a condition of probation and to pay a $500 fine and restitution of approximately $34,000.



District Judge W.C. Kirkendall ordered a presentencing investigation by the adult probation office which also will calculate the exact amount of monthly payments toward restitution by the defendant. Kirkendall is not bound by the plea agreement, but if he were to decide to reject it, Emard would have an opportunity to withdraw her plea.



Kirkendall scheduled sentencing for Aug. 9 in Second 25th District Court.



“She doesn’t have a significant criminal history other than this,” Bloomquist said. “She’ll have a chance to turn her life around. She’s made some effort already to pay back the money.”



Established in 2004, the Seguin Education Foundation raises and distributes funds to enhance opportunities, enrich teaching and inspire learning in the Seguin Independent School District.



The Seguin Police Department began an investigation in July 2010 after SEF officials reported that a review of the foundation’s accounts revealed inappropriate expenditures and inaccurate treasurer’s reports. The review of SEF’s books reportedly indicated there were $54,000 in unallocated expenditures in 2009 and that $18,000 of that amount had been returned to the foundation in 2010.



SEF Administrator Katie Edwards could not be reached Monday for comment about the plea agreement. When Emard was indicted in November 2010, Edwards said the foundation remained active and viable.



“This incident in no way hinders the foundation’s commitment to provide financial support to the students and teachers in the Seguin ISD through our various programs,” Edwards said. “Upon resolution of this incident, the foundation directors expect full restitution.”