Former Buda Chamber employee arrested for misuse of funds

BUDA — On Jan. 26, the Kermit “K.C.” Watson, former director of operations for the Buda Area Chamber of Commerce was arrested for credit/debit card abuse and misapplication of fiduciary/financial property.

According to a statement released by the chamber, which did not specifically name Watson, “suspicious” activities were uncovered while reconciling financial accounts.

“Following an initial investigation by the board of directors that uncovered what appears to be fraud and misuse of funds by a former Chamber employee, the matter was referred to law enforcement,” said Colin Strother, president of the board.

Strother explained that missing receipts were noticed in December 2023, but once the receipts were located, unauthorized purchases were discovered. The board continued to look further back at accounts and “once malfeasance was obvious,” the case was turned over to the Buda Police Department.

Although the total amount of damage has yet to be released, Watson was charged with misapplication of fiduciary/financial property greater than $2,500 and less than $30,000, which is a state jail felony. In addition to the local charges, Watson was also picked up for a warrant for aggravated assault with a deadly weapon, a second-degree felony, out of Brewster County.

According to Strother, the matter is now out of the control of the chamber and the board’s goal is to move forward and work on rebuilding the fund balance.

“This was a substantial setback fiscally and psychologically … we take our responsibility to our members very seriously, which is one of the reasons we pursued this,” Strother said. “We are very fortunate that our city manager, who is on our board, is a finance expert and is helping us put in safeguards for the future.”

The board president reiterated his gratitude to all of the chamber members for their continued support.

“We’re alive and kicking; we will get through this,” Strother concluded.