Ex-Valentine ISD Business Manager Sentenced to Prison for Stealing Federal Funds

Former Valentine ISD business manager/tax accessor collector Ernesto Villarreal Jr., 43, of Marfa, was sentenced by a federal judge in Pecos to 27 months in prison for wire fraud and theft concerning programs receiving federal funds, the U.S. attorney’s office announced on Thursday.

In addition to imprisonment, the judge ordered Villarreal to pay restitution to VISD in the amount of $314,497.74 — and ordered a forfeiture money judgment against Villarreal amounting to $291,853.90.

Pleaded Guilty

Villarreal was arrested on June 24, 2024, and pleaded guilty on Nov. 20 to all nine counts against him.

Federal prosecutors said that during his time as a VISD employee, Villarreal schemed to defraud VISD by:

• Using two VISD credit cards to make hundreds of unauthorized personal purchases totaling over $100,000.
  
  
• Issuing over $10,000 in unauthorized checks to himself from VISD accounts.
  
  
• Issuing over $20,000 in unauthorized checks from VISD accounts to cover personal expenses owed to a credit card company.
  
  
• Changing bank account information for certain current and former employees.
  
  
• Generating over $100,000 in fraudulent payments to those current and former employees, for work that did not actually occur.
  
  
• Routing those payments to his own personal bank accounts, all without the knowledge or permission of the employees.
  
  
• Using the ill-gotten funds for hundreds of personal purchases — such as for travel, lodging, home improvements, hardware store purchases, personal cell phone bills, fuel, oil changes, convenience store purchases, Airbnb rentals, personal flight purchases, and various other unauthorized purchases.

VISD currently has 32 students, TEA records reflect.