Former Valentine ISD Business Manager Pleads Guilty to $300K Embezzlement Scheme

A former Business Manager and Tax Collector for Valentine Independent School District (Valentine ISD) in West Texas has pleaded guilty to charges of theft and wire fraud for misappropriating over $300,000 in school district funds for personal use.

Ernesto Villarreal Jr., 43, of Marfa, admitted to using Valentine ISD credit cards and accounts to make hundreds of unauthorized personal purchases and diverting funds into his own bank accounts. According to court records, Villarreal made over $10,000 in unauthorized payments to himself, issued over $20,000 in checks to cover personal credit card expenses, and redirected more than $100,000 in fraudulent payments for fake work to his personal accounts by altering the payroll information of current and former employees.

The stolen funds were used for personal expenses, including travel, lodging, home improvements, fuel, and Airbnb rentals, among other purchases. Villarreal’s actions resulted in significant financial losses for Valentine ISD, totaling more than $300,000.

Villarreal pleaded guilty to one count of theft concerning programs receiving federal funds and eight counts of wire fraud. Each wire fraud count carries a potential sentence of up to 20 years in prison, while the theft count could result in up to 10 years in prison. Sentencing is scheduled for February 21, 2025, in federal court, where a judge will consider the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated by the FBI, the Texas Rangers, and the Department of Education Office of Inspector General. U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement, and Assistant U.S. Attorneys John Fedock and Scott Greenbaum are prosecuting the case.