Former Tomball ISD tax collector indicted in $1 million wire fraud case

Federal prosecutors have charged former Tomball ISD tax office manager Kristi Williams with wire fraud, alleging she diverted $996,174 in cash property tax payments that should have gone into the district’s bank account. Williams is scheduled to make her first federal court appearance on July 13.

Williams managed Tomball ISD’s tax office from January 2018 through November 2023. Prosecutors allege the scheme ran from September 2018 through June 2023 and used the office’s tax software to reverse cash payments, move them into new batches, and keep those batches open after deposits should have been completed. Prosecutors allege the batches were typically closed at about $15,000 to $20,000.

Tomball ISD said it began investigating after discovering suspicious financial activity in 2023, fired Williams in November of that year, and turned the matter over to federal law enforcement. In a message to families, the district said it has “worked diligently to strengthen internal controls and financial oversight” and is “pursuing every available avenue to seek restitution of the funds, including a claim against our surety bond.” Tomball ISD’s current tax payment system lists Cynthia Garcia as tax assessor-collector. Families can pay online, by phone, by mail, or in person at the Tomball ISD Central Administration Building, where the tax office accepts cash, personal check, cashier’s check, credit card, and debit card payments. Williams’ attorney declined to respond, and the former employee has not been convicted.