Former city employee and 6 others accused of stealing millions of taxpayer dollars, records show

HOUSTON, Texas (KTRK) — A former City of Houston Public Works employee has been arrested for allegedly taking bribes and funneling money through several businesses over nearly ten months, according to charging documents.

Patrece Lee faces four charges of bribery and abuse of official capacity exceeding $300,000. Six additional individuals are expected to surrender in the coming days, accused of embezzling millions of taxpayer dollars and potentially compromising public infrastructure for years.

“Public corruption costs taxpayer money and, more importantly, it violates the public trust in government,” Harris County District Attorney Kim Ogg said.

Lee was apprehended on Thursday, accused of masterminding a scheme that reportedly stole millions in city tax dollars, enriching herself in the process. This arrest follows the city’s hiring of several emergency contractors to address multiple water main breaks last year.

As a high-ranking public works employee, Lee, along with her brother and five others, allegedly secured high-level emergency repair contracts for water main breaks from the city. From January 2023 to November 2023, Lee is accused of soliciting kickbacks exceeding $320,000 and defrauding the department of $400,000 by diverting funds through a “shell” company.

Court records indicate that Lee used City of Houston funds and waterline repair services by recommending payment to Lu’s Construction, a company owned by her brother. Additionally, from September 2023 to November 2023, Lee reportedly accepted cash payments from “Tiesha Coleman Houston” for recommending her approval for a work order under the City’s Emergency Purchase Justification.

“Patrece Lee’s scheme bypassed every check and balance the city had in place to prevent theft and bribery,” Ogg stated.

Randi Macchi, the public works chief operating officer, emphasized the need for more stringent checks and balances to prevent future incidents, suggesting thorough verification of businesses to ensure they are not being operated out of apartments, as was the case with the shell company run by Lee’s brother.

The seven defendants face a total of 14 charges, including abuse of official capacity, bribery, and tampering, with multiple charges being felonies.

“All the stakeholders here today will not tolerate public corruption,” Houston Mayor John Whitmire affirmed.

Of the stolen millions, $750,000 was allegedly pocketed by the seven individuals. While the complete list of purchases made with the stolen funds has not been disclosed, it will serve as evidence in the upcoming trial. The DA revealed that multiple new cars were recently purchased with the embezzled money.

The repercussions of this scheme are expected to be long-lasting, as poorly executed repairs will likely lead to continued infrastructure issues.

“We now know which repairs were good and which were bad. This may be a problem we continue to pay for as taxpayers,” Ogg said.