From the Desk of the Mayor: Local Update on North Texas Fraud Case

I would like to provide accurate information regarding recent media coverage of a federal fraud investigation in North Texas that referenced activity within our city.

Regional Case Overview

• During the investigation, the City was not privy to all details, as the matter was handled at the federal level

•  Now that the defendant has pleaded guilty to all charges, additional information related to the case may be disclosed

•  The investigation identified approximately $5 million in total losses

• More than 40 victims were affected

• The fraudulent activity spanned seven counties across North Texas

These figures above reflect the regional investigation, not activity specific to Runaway Bay.

What occurred in Runaway Bay

• A total of 5 residential properties (3 of them retaining most of the violations) in Runaway Bay were associated with the individual involved.

• These properties involved two builders constructing speculative homes for resale.

• No individual Runaway Bay homeowners were defrauded in the manner described elsewhere in the investigation.

• The affected builders ultimately completed the homes and mitigated their financial losses.

  
  

City enforcement and cooperation

• During construction activity, Runaway Bay Code Enforcement issued 424 citations related to violations of City ordinances. For example, construction debris and unsafe working conditions, such as trash and materirals not being secured.

• Because the violations were not corrected in a timely manner, citations continued to be issued on a daily basis, demonstrating active and ongoing enforcement.

• City staff and law enforcement worked cooperatively with state and federal investigators when information and documentation were requested.

• Because this was an active federal investigation, the City was limited in what could be publicly discussed until the defendant formally pleaded guilty, which is why media coverage occurred only recently.

Commendation of investigative efforts

I would like to recognize Investigator Brian Brennan, Euless Police Officer with the Crimes Task Force, assigned through the U.S. Secret Service, for his professionalism throughout this investigation. Investigator Brennan praised the outstanding cooperation, accommodation and responsiveness of Runaway Bay’s Police Department, Judge Karen Green, and City leadership.

It's my commitment to always work with County, State and Federal agents to help prevent financial crimes against our citizens. This case reflects a team effort across multiple agencies, and I am proud of the role Runaway Bay personnel played in protecting public safety and supporting a successful federal prosecution.

Additional information will be shared as it becomes available.

Herman White

City of Runaway Bay