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El Paso school district uncovers $41K in alleged casino fraud by ex-employee

A trusted employee's gambling spree left a Texas school district reeling. Now, officials are tightening controls—and demanding answers.

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An Independent School District (ISD) in El Paso, Texas has attracted growing media attention after it issued a statement confirming that nearly $41,000 of potentially unauthorized credit card expenses have allegedly been blown at a casino by an ex-employee.

El Paso school district uncovers $41K in alleged casino fraud by ex-employee

Local news channel KTSM reported on Tuesday that the ISD for the small, unincorporated agricultural community of Fabens stated that it was aware of recent media reports of the credit card misuse, and confirmed the individual involved was an ex-Fabens ISD employee.

The statement from Fabens says the school district took prompt action after discovering misspending on its credit card, and fired the culprit before the audit.

It was at a Fabens board meeting on January 21 that an auditor discussing the school district's annual financial report for 2025 brought up misspending on the card, whereby cash advances appear to have been obtained for personal purposes.

altered these statements to hide the casino charges

The auditor added that the ex-employee allegedly used the credit card at a Texas casino. Despite the card's statements being sent to the unnamed offender's email address, the auditor alleged that the employee altered these statements to hide the casino charges.

The ISD stressed the point that the fraud was discovered internally, and action was taken promptly by Superintendent Dr. Rogelio Segovia prior to the audit.

An investigation into the crime is ongoing, with Fabens stating it would continue to cooperate fully with the appropriate law enforcement authorities.

The school district also pledged its ongoing commitment to transparency, fiscal responsibility, and maintaining the trust of our community.

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