Texas Rangers Investigate Water Department Embezzlement Claim

 Posted on November 07, 2025 in Criminal Defense

A third claim of alleged embezzlement against an East Texas water supply group is being investigated by the Texas Rangers. Upshur County District Attorney Billy Byrd said over $100,000 is allegedly missing from the Union Grove Water Supply Co-op. The board claims that an office employee embezzled the money.

Byrd added that this is not the first report of a similar incident, as complaints were made in 2013 and 2023. In 2013, the DA’s office prosecuted and recovered $40,350, while in 2023, a different employee allegedly took $8,000. Since this is the third complaint, Byrd has asked that the Texas Rangers lead the investigation, while also asking those making payments to the water department not to pay in cash.  

In Texas, the line between employee error and embezzlement can be very thin. What begins as a bookkeeping error or informal use of petty cash funds can quickly escalate into felony theft charges. Because embezzlement involves a breach of trust, prosecutors often pursue these cases aggressively. An experienced Karnes City, TX white collar crimes lawyer can help defend you if you are facing embezzlement or other criminal offenses.  

What is Embezzlement Under Texas Law?

Embezzlement is not listed as a separate offense under the Texas Penal Code; instead, it falls under the state’s Theft Statute (Texas Penal Code Section 31.03). Typical scenarios involving embezzlement might include:

• An employee who diverts company funds
• Misuse by an employee of corporate credit cards or payroll accounts
• A bookkeeper who alters invoices or receipts
• A contractor who retains client deposits
• An employee who directly steals cash from his or her employer

The elements of embezzlement include:

• The defendant was entrusted with money or property.
• The defendant took the property for personal use.
• The defendant acted without the owner's consent.
• The defendant intended to permanently deprive the owner of the property.

How Does Texas Penalize Embezzlement?

The penalties for embezzlement in Texas, like the penalties for theft, depend on the value of the property taken. If the value is less than $100, the crime is charged as a Class C misdemeanor. If the value of the property is between $100 and $750, the crime is charged as a Class B misdemeanor. For theft of property with a value between $750 and $2,500, embezzlement is a Class A misdemeanor.

Theft of property valued between $2,500 and $30,000 is a state jail felony, while theft of property valued between $30,000 and $150,000 is a third-degree felony. Theft of property valued between $150,000 and $300,000 is a second-degree felony, while theft of property valued over $300,000 is charged as a first-degree felony.  

What Are Some Common Defenses to Charges of Embezzlement?

A defense attorney may be able to show there was no intent to deprive another of his or her property and that the entire matter is due to a mistake, a misunderstanding, or a bookkeeping error. The defendant may have believed he or she had authority or entitlement, or there may be insufficient evidence, including a weak audit trail or only circumstantial proof.

If a hostile workplace dispute was ongoing, the defense attorney may claim that the embezzlement was a setup. In other cases, the defendant may have been pressured by superiors to manipulate records. In some instances, voluntary restitution (while not a defense) can influence sentencing or dismissal. It is always wise to consult legal counsel even before an indictment, when possible, to negotiate a pre-filing resolution.

Contact a Karnes County, TX Criminal Defense Lawyer

An embezzlement conviction can result in a permanent bar to employment in financial or fiduciary roles, difficulty obtaining a professional license, and loss of eligibility for federal employment or contracting.

A highly skilled Karnes City, TX embezzlement attorney from BRCK Criminal Defense Attorneys can challenge the evidence against you and negotiate to reduce or dismiss the charges pre-trial. Every partner in our firm is either a former criminal prosecutor or a judge, bringing valuable experience that benefits our clients. Call 830-769-1010 to schedule your free consultation. Our attorneys speak Spanish.