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Former Austin Energy employee accused of fraud
A former Austin Energy employee is accused of sending nearly $1 million in city money to fake vendors connected to his family and himself.
AUSTIN, Texas - A former Austin Energy employee is accused of sending nearly $1 million in city money to fake vendors connected to his family and himself.
That's according to an investigative report released by the Austin City Auditors Office.
Nearly $1 million stolen
Timeline:
An investigative report from the city auditor's office details its findings. It's centered around former Austin Energy employee Mark Ybarra.
The investigative report titled "Austin Energy Fraud and Waste" says between 2018 and 2023, former Austin energy employee Mark Ybarra made around $980,000 in transactions to false vendors on his city credit card.
Several businesses appear to be related to his extended family and at least one directly related to him.
The transactions continued for around six years, resulting in a waste of city funds.
Ybarra was hired to work for Austin Energy as a facility service specialist in 2014. His job responsibilities included performing basic maintenance and coordinating with vendors. He was given a city credit card to buy materials and pay vendors.
In 2023, Austin Energy reported to the city auditors office that Ybarra had made $80,000 in transactions on his city credit card between April and July 2023.
Austin Energy said the invoices did not include vendor information like addresses or phone numbers. When management asked for vendor details, Ybarra didn’t provide them and resigned.
The report says between 2018 and 2023 he paid at least 30 vendors with the card, while only eight of them were registered city vendors.
The services included debris removal, window cleaning, and painting with little to no detail about the vendor, which is a violation of city policy.
The investigation found at least 10 businesses had the same address, which turned out to be the home of a family member.
The report says those transactions totaled about $400,000. Another invoice with Ybarra's personal email paid $40,000. And, another vendor with an address that does not appear to exist was paid over $80,000.
The remainder of $980,000 payments went to vendors not related to Ybarra but appeared to be fake.
What's next:
Ybarra was indicted by a grand jury in August. He’s facing a felony charge of theft.
His wife, Ambrosia, who worked for the Austin Watershed Department, failed to cooperate with the investigation, refusing to answer questions. She’s being charged with felony theft.
FOX reached out to Ybarra's attorney for comment but haven’t heard back.
The report also names two Austin Energy managers responsible for reviewing and approving Ybarra's monthly credit card transactions. They are not being charged criminally.
Austin City Council member responds
Austin City Council Member Marc Duchen released this statement below:
"I’m grateful that Austin Energy and the city’s auditor uncovered the issue and referred it to the police, but the findings point to notable issues with city spending and controls. As I’ve said before, city hall needs stricter spending controls in place, so that waste, fraud, and abuse is detected and stopped right away, not years after it begins. A citywide efficiency audit that includes a forensic audit and controls will ensure that taxpayer funds are spent as wisely as possible, and fraud is detected early and deterred. I look forward to working with my colleagues on these initiatives in the coming weeks."
Austin Energy responds
Austin Energy released this statement below:
"Austin Energy appreciates the City Auditor’s Office thorough review of fraudulent actions by a former employee. Austin Energy takes fraud, waste and abuse seriously, and we are deeply disheartened by this breach of trust. Upon discovering the suspected fraud, Austin Energy contacted the City Auditor’s Office and immediate steps were taken to address the situation, including:
Full cooperation with the City Auditor’s Office and Austin Police Department investigations.
Making key improvements to purchasing procedures and by resetting expectations for employees and leaders.
Updates to purchasing controls and review processes to prevent future misconduct, more stringent approval processes when using a Procard and a more robust governance framework for procurement, contracting and Procard oversight.
This individual’s illegal conduct does not reflect the values or integrity of Austin Energy or the City of Austin, and we recognize the gravity of this situation and the impact it has on public trust.
We remain committed to transparency and the ethical stewardship of public resources and have taken measures to prevent this from happening again."
The Source: Information from