Fabens ISD superintendent addresses $41,000 in misused funds spent at casino

Описание: The Fabens Independent School District leaders say a former employee used more than $40,000 in district funds at a local casino, prompting an internal investigation, a referral to law enforcement and new financial safeguards.

Superintendent Dr. Rogelio Segovia said the district uncovered misuse tied to a district credit card and acted quickly.

“We did uncover the misuse of the credit card. We did immediately investigate it internally and then turned it over to the authorities,” Segovia said.

A financial audit found an employee spent $40,780 in credit card purchases for personal use from Sept. 1, 2024, to June 30, 2025.

The audit did not specify what the purchases were for, but the spending was discussed at a board meeting in January, where the auditor said the purchases were made at a local casino by an employee who is no longer with the district.

The audit also found the employee altered credit card statements to hide the purchases.

Segovia said the district disclosed the issue as part of the audit process.

“We did disclose that we had this finding before the audit. So we disclosed it during the audit process, and that's why it was reviewed,” he said.

Segovia said the district is operating on a roughly $27 million budget while facing a $2 million deficit, but the misused funds have not affected students or staff.

“No, there has been no impact to our students or staff,” he said.

The superintendent said the district plans to pursue recovery of the funds, potentially through its insurance policy, but not until the investigation is complete.

“We are keen to recover the funds. In terms of recovering, it is part of our insurance policy. However, we have to wait until the conclusion of the investigation,” Segovia said.

KFOX14/CBS4 reached out to the Texas Education Agency regarding any potential investigations underway at the district.

In a statement, an official said,"There is no current TEA investigation concerning Fabens ISD."

Meantime, Segovia said the district has strengthened internal controls since the discovery.

“Well, we have enhanced our internal controls,” he said.

He added that the district has added additional layers of review for credit card statements, including having two people verify statements against receipts.

“So now we have two individuals checking the statement against our receipts to ensure that what is being claimed in the statement is accurate,” Segovia said.

STORY: https://kfoxtv.com/news/local/fabens-...

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