Civil Fraud

The Texas Supreme Court has listed the five elements of conspiracy to defraud.  They are: 1) two or more persons; 2) an object to be accomplished; 3) a meeting of the minds on the object or course of action; 4) one or more unlawful overt acts; and 5) damages as a proximate result. Massey v. Armco Steel Co., 652 S.W.2d 932 (Tex. 1983). 

It is undisputed that the developers and owners of the property now comprising the six municipal utility districts, by and through their attorney, conspired with the mayor of League City, Joe Lamb, as well as the city council to enter a contract to deprive the residents of the district money declared to be lawful taxes but in fact were and known to be excessive as a matter of law.  This unlawful conduct has existed since the inception of each district. 

Once a conspiracy is proven, each co-conspirator is responsible for all acts done by any of the conspirators in furtherance of the unlawful combination. Carroll v. Timmers Chevrolet, 107 S.W.2d 550 (Tex. 1937).

A city may be held liable for exemplary damages.  City of Gladewater v. Pike, 727 S.W.2d 514 (Tex. 1987).

  Criminal Fraud

Section 31.03 of the Texas Penal Code makes it unlawful to appropriate property of another without the owner's effective consent.  Consent is not effective if induced by deception. 

By submitting unlawful mud tax bills the officers, directors and employees of the mud districts used deception in obtaining money rightfully belonging to the residents. 

The  amounts unlawfully collected can be aggregated since the amounts obtained were pursuant to one scheme or continuing course of conduct to enhance the offense for each year taxes were unlawfully collected to a first degree felony.