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Suspected theft from city tops $650,000

AURORA



WHEELER

WHEELER

Investigators say former Aurora city administrator Toni Wheeler stole more than $650,000 from the city and spent it on items such as airline tickets, Amazon purchases, Apple products, groceries, vehicles and paying off her personal credit card.

The fraudulent purchases were possibly covered up in part with a fake auditor and website created by Wheeler, according to evidence obtained by the Texas Ranger investigating the case.

Those details and more were revealed in a copy of the arrest warrant affidavit obtained through a public information request by the Wise County Messenger following Wheeler’s arrest last week on a charge of theft of property more than $300,000 by a public servant.

According to the affidavit, a city council member (whose name was redacted) contacted Texas Ranger B.J. Hill in May stating Wheeler was possibly embezzling funds from the city, although the person had no evidence to support the claim. Hill asked the council to investigate the financial records to determine if money was missing.

SUSPICIOUS FIRE — As questions were raised about the city’s finances, a fire destroyed Aurora City Hall. Investigators arrested former city secretary Toni Wheeler last week for embezzling money from the city. ARCHIVES

SUSPICIOUS FIRE — As questions were raised about the city’s finances, a fire destroyed Aurora City Hall. Investigators arrested former city secretary Toni Wheeler last week for embezzling money from the city. ARCHIVES

Two weeks later, after the council member requested the records, Aurora City Hall was destroyed in an early morning fire. Wheeler told the council member the records were destroyed in the blaze, the affidavit states.

Arson/fire investigators provided Hill with information that the origin of the fire was found near the filing cabinets in the center of the room and that files in hanging folders consistent with the contents of the filing cabinets were located on the floor in the area, according to the Ranger.

Wheeler had provided statements to the fire investigators that a multi-plug and extension cord were plugged into the outlet near the area of origin. However, fire investigators did not locate the items where Wheeler described them, the affidavit states.

In September, Hill obtained a grand jury subpoena from the Wise County District Attorney’s Office for Frost Bank records for the City of Aurora. A review of the records revealed suspected fraudulent transactions including: n $130,828.73 to D. Kelly Construction (which the Ranger discovered was registered to Wheeler under two assumed names of Area 114 Party Patio and Area 114 Brewery) n $97,572.38 to different individuals using the Zelle app n $96,728.76 to Amazon n $55,998.34 to different individuals using the PayPal app n $42,200 to different individuals using the Venmo app n $10,981.09 to Assister Auctioneers n $10,335.80 to Home Depot n $8,721.73 to American Airlines n $8,500 to Facebook n $6,950.65 to Capital One Mobile Payment n $2,545.08 to ALDI Grocery Delivers n $2,182.88 to Toyota of Grapevine n $2,075.64 to Wayfair n $1,538.62 to Apple online store n $1,337.08 to Williams-Sonoma n $1,197.77 to Qatar Airlines n $995.04 to Overstock.com n $850.52 to HEB grocery store n $630.62 to Airbnb n $601.91 to Sam’s Club n $317.91 to StubHub n $240 to Tom Thumb grocery store n $148.63 to Door Dash

The review of the financial records indicate the thefts have been ongoing for nearly five years.

“Affiant discovered that Wheeler transferred $40,000 from the City of Aurora account to her personal account Jan. 31, 2017, (and) $4,000 July 11, 2017,” the affidavit states. “Wheeler used approximately $85,744.28 of City of Aurora funds for her personal credit card payments from 2017 through 2021.”

The Ranger also found evidence that repair work on a vehicle registered to Wheeler — a 2015 Toyota Tacoma — was paid for using city funds.

The records showed Wheeler used city funds to pay employees at Martian Margaritas, which is co-owned by Wheeler. Wheeler also gave a person (whose name was redacted) a pickup bought from the auction company with city funds. The payment records for that truck also shows Wheeler purchased a 2008 Can-Am Spider ATV at the auction, the affidavit states. Records show the ATV is registered to Wheeler at an address in Dublin.

While the investigation continues, Hill states the amount of theft has already reached approximately $653,909.

Hill said since the beginning of the investigation this past summer, Wheeler provided information that an auditing company by the name L. Miller and Associates CPA had been contracted by the city to look over the city’s expenses. Hill said in the affidavit he made multiple attempts to reach the CPA by phone but could never make contact. The Ranger did receive emails from “Linda Miller” who represented she was with the company, but she would never return calls.

“The last email explained that a complete review had been done of the City of Aurora accounts and found, ‘No unusual purchases,’” the affidavit states.

He later learned a phone answering service had been set up to take messages for L. Miller and Associates.

Further investigation of Wheeler’s bank records revealed she was making payments to the answering company Online Virtual Offices.

Hill stated he believes, “Toni Wheeler has been posing as the auditor, Linda Miller, and has created fraudulent invoices paid by the city to the fake auditor. Wheeler also has created Linda Miller CPA using Godaddy.com.”

The city might not be the only entity seeking restitution from Wheeler. Civil court records show the owners of Atomic Taco sued Wheeler and KIT Investments, which Wheeler co-owns, in April. The lawsuit claims the business moved onto the premises of Area 114, but the septic system that was supposed to be ready for commercial operation by KIT failed almost immediately after the business opened. The plaintiffs claim Wheeler refused to correct the issue.

The lawsuit states that after the business contacted the Texas Commission on Environmental Quality to seek a resolution, the city retaliated against them when the city health inspector found “frivolous violations” and used a homophobic slur aimed at the business owners, the lawsuit states.

Eventually Atomic Taco moved out of the city, and they are seeking damages in excess of $1 million, according to the suit.

The defendants in the case, including Wheeler, have denied all allegations, according to court records.

Wheeler was arrested on the first degree felony charge of theft by a public servant last Thursday and released from the Wise County Jail after posting $100,000 bond.

One response to “Suspected theft from city tops $650,000”

  1. Shannon McGauley says:

    I’m surprised that the city of Aurora had that much money in surplus. In this day and age, a “paper trail” is unavoidable. www.mcgauley.org

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