7 Arrested In Ongoing Tax Assessor Fraud Case: Austin Police

AUSTIN, TX — Seven people have been arrested so far in an ongoing probe into fraudulent activities at the Travis County Tax Assessor-Collector office, police said Monday.

A recent county audit pointed to possible fraud in the tax offices for Precinct 1 and Precinct 2, prompting District Attorney Margaret Moore to call in Texas Department of Public Safety investigators to assist in a subsequent investigation.

Financial irregularities subsequently were found after a two-month long investigation. While declining greater specificity into the investigation, DPS officials have said the suspect were, in part, minimizing the amount of taxes they had been paying on vehicle title transactions and other related violations. The purchase price of vehicles would be exponentially lowered on formal records to avoid paying higher taxes, officials gave as an example of the scheme.

Other allegations include the taking of bribes in exchange for titles that never should have been assigned, investigators have said.

Those arrested range in longevity at the tax office from more than two decades to a mere two years, and range in ages from 35 to 72. One of the suspects is married to a county employee, DPS officials noted.

Those arrested, with accompanying charges, were:

• Susie Alvarez Araujo, 43, Theft by Public Servant - Employed as a Tax Specialist II and has been with the county since April 2015.

Susie Alvarez Araujo

• Eulalio Hernandez, 72, Engaging in Organized Crime.

Eulalio Hernandez

• Steven Hernandez, 35, Theft by Public Servant - Employed as a Tax Specialist I and has been employed with the county since July 2015.

Steven Hernandez

• Cecil Leary, Jr., 61, Engaging in Organized Crime. Photo unavailable.

• Shell Kenneth Prieto-Reese, 43, Theft by Public Servant - Employed as a Tax Specialist II and has been with the county since September 2008.

Shell Kenneth Prieto-Reese

• Cathy Lynn Wilson, 57, Theft by Public Servant - Employed as a Tax Specialist III and has been with the county since December 1995.

Cathy Lynn Wilson

• Hipolita Tiquet De Dios, 41, Engaging in Organized Crime.

Hipolita Tiquet De Dios

Employees arrested are listed as tax specialists on the Texas Tribune Government Salaries Explorer earning salaries between $37,950 and $44,098. Five of the suspects were arrested Friday, with their identities (along with their booking photos) released on Monday.

The agency's satellite offices have been temporarily closed to accommodate the ongoing investigation. However, the main tax assessor's office located on 5501 Airport Blvd. will remain open to assist customers, officials said.

>>> Uppermost images: Cathy Lynn Wilson, 57, is the longest-serving tax assessor's office employee to be charged, starting there in December 1995, while Eulalio Hernandez, 72, is the oldest to be charged. Booking photos provided by Austin Police Department.