A former Tomball ISD tax manager has been federally charged with wire fraud after authorities accused her of stealing nearly $1 million from the district’s Tax Office.
The former employee was identified as Kristi Williams. KPRC 2 reported that Williams was the district’s former Manager of Property Tax Administration.
Federal authorities allege Williams stole $996,174 in cash from the school district. Tomball ISD said it discovered suspicious financial activity in 2023, investigated, terminated Williams, and turned the matter over to federal law enforcement.
The charge is an allegation. Williams is presumed innocent unless proven guilty.
Cash Property Tax Payments Are At The Center Of The Case
KPRC 2 reported that Williams held the tax manager position from January 2018 to November 2023. Court records cited by the outlet say the alleged scheme ran from September 2018 through June 2023.
The district’s Tax Office collected local property taxes. When taxpayers paid in cash, employees placed the money in envelopes and recorded the payments in the district’s tax collection software as part of payment groups.
Once a group of cash payments reached $15,000, the group was supposed to be closed in the software. Williams was then supposed to deposit that cash into Tomball ISD bank accounts, according to court records cited by KPRC 2.
Prosecutors Say Software Was Used To Hide The Missing Money
Instead of depositing all the cash, prosecutors allege Williams stole $996,174 from the Tax Office.
Court records cited by KPRC 2 say Williams allegedly disguised the theft by reversing certain cash payments in the tax collection software, recording them in new groups, and keeping those new groups open for long periods.
The federal case was filed as a criminal information. KPRC 2 reported that Williams has been summoned to appear in federal court on July 13.
Tomball ISD Says Taxpayer Accounts Were Not Affected
FOX 26 Houston reported that Tomball ISD sent a letter to families and staff after the federal charge was filed. The district said the alleged theft involved one former employee and does not reflect the work of its broader staff.
The district said it has strengthened internal controls and financial oversight since discovering the suspicious activity. It also said it is pursuing restitution, including a claim against a required surety bond.
Tomball ISD told taxpayers the incident has no impact on taxpayer accounts. The district said it could not comment further because the federal case remains active.
Cash Payments Need A Paper Trail
The allegations involve a school district tax office, but the records issue applies to any large cash payment made to a government office, contractor, landlord, repair company, medical office, or other organization.
People who pay in cash should ask for a dated receipt before leaving the counter. The receipt should show the amount paid, account number or invoice number, payer name, recipient name, payment location, and the employee or office that accepted the money.
For property taxes, taxpayers should also check the official account portal or written statement later to confirm the payment was posted correctly. If the payment does not appear, they should contact the tax office quickly and keep the receipt, envelope copy, confirmation number, and any emails or messages.
Large cash payments are harder to trace than checks, money orders, card payments, or electronic transfers. Anyone making a major payment should keep copies of receipts, account screenshots, statements, and written confirmations until the account clearly shows the payment was credited.