Former City Employee Charged with Stealing City Funds

The city of San Angelo’s former Property Manager, Diana Farris, faces state felony theft charges following a recent internal audit in which cash payments Farris was responsible for depositing were determined never to have been paid into the city’s bank account.

City Internal Auditor Steve Mahaffey discovered the missing funds during an audit on May 14, resulting in Farris’ immediate termination from the position. The theft is alleged to have taken place between Sept. 25, 2013 and May 12, 2014.

According to an affidavit for an arrest warrant filed by San Angelo Police Detective Matthew Vaughn on May 29, a total of eight cash payments provided to Farris had never been deposited.

“The defendant had provided the customers with receipts, photocopied the U.S. currency used to make the payments, but there was no corresponding deposit made to the bank,” Vaughn writes in the affidavit.

During the investigation, he wrote, Vaughn viewed video surveillance footage of Farris’ desk and observed Farris place cash into her purse on two different occasions.

According to the affidavit, SAPD Officer Charles Barker was issuing Farris a criminal trespass warning from city of San Angelo property following her termination when he observed $400 in cash fall out of Farris’ purse. Along with the money was a city of San Angelo receipt for the same sum.

“A serial number from the money found in the defendant’s purse identically matched the serial number of a bill taken as payment from a customer on the 12th day of May, 2014,” the affidavit states.

On May 30, SAPD Officer Spearman located Farris at her residence in the 4100 block of Forest Trail and executed a county warrant for her arrest. Farris was booked that afternoon for theft equal to or more than $1,500 but less than $20k, a state jail felony punishable by 180 days to 2 years confinement and an optional fine not to exceed $10k. She was released on May 31 on a $3,000 surety bond.

Friday, July 11, LIVE! contacted Farris for comment regarding the allegations against her. “My attorney has asked me not to say anything, so no comment,” Farris said. Asked whether she denies the charges against her, Farris replied, “I’m not going to say anything. Thank you.”

As Property Manager, Farris was responsible for managing the lease of city-owned properties and routinely handled cash payments made to the city’s Real Estate Division. According to the city website, the Real Estate Division was created on Oct. 1, 2012.

The office, the site states, is responsible for “the acquisition, management and disposition of the City’s real estate interests,” and “the management of the recovery of financial obligations owed to the city”.