San Antonio Standard

A former Valentine Independent School District employee was arrested on criminal charges related to an alleged scheme to misappropriate school district funds for personal expenses.

According to court documents, Ernesto Villarreal, 42, of Marfa, is alleged to have improperly used credit cards issued by Valentine ISD. The cards were intended for Villarreal’s authorized purchases in his capacity as business manager and tax assessor/collector. Instead, Villarreal allegedly used the credit cards for hundreds of personal purchases, including travel, lodging, home improvements, hardware store purchases, personal cell phone bills, fuel, oil changes, convenience store purchases, university tuition payments, and various other unauthorized items.

Additionally, Villarreal is alleged to have accessed payroll information for several employees and former employees of the district to create fraudulent payroll payments sent to his personal bank account. The indictment alleges that Villarreal changed the direct deposit information for employees and former employees and replaced it with his own bank accounts’ direct deposit details.

Villarreal is charged with one count of theft concerning programs receiving federal funds and eight counts of wire fraud. If convicted, he faces up to 10 years in prison for the theft count and up to 20 years in prison for each wire fraud count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The FBI is investigating the case with assistance from the Texas Rangers and the Department of Education Office of Inspector General.

Assistant U.S. Attorney Scott Greenbaum is prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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