Ex-Controller Charged in $680K Theft Tied to Gambling Debt

A former Midland employee is in serious trouble after allegedly stealing over $680,000 from his workplace to cover gambling debts.

$683,000 in Unauthorized Transfers Revealed 

J.M.B., 48, has been arrested and charged with a first-degree felony for theft over $300,000. In Texas, that’s as serious as it gets. If convicted, he could be looking at anywhere from five to 99 years or life in prison.

According to the Midland County Sheriff’s Office, B. worked as a controller at Slater Controls Inc., handling the company’s finances and accounting.

In June, B. was terminated from his role after internal suspicions led to a closer look at the company’s accounts.

The business owners initially reported that roughly $663,000 had gone missing. However, a later forensic audit by DFG Forensic Accounting Services revealed the amount was even higher, just over $683,000 in unauthorized transfers.

“(The company owners) were able to track the theft as far back as January 2022 and stated that, over time, Babb made several transactions withdrawing company funds,” a sheriff’s deputy stated in the affidavit.

He Admitted He Was Addicted to Gambling

Slater Controls leadership reportedly uncovered the suspicious activity on March 24 during a meeting with B. in his office. They said they recorded the conversation on a phone, during which the man allegedly admitted to taking the money and confessed that he had a gambling addiction.

On April 23, B. met with investigators and his attorney. He explained he had started working at Slater Controls in January 2021 and admitted to taking funds in an attempt to recover gambling losses. 

According to the affidavit, he said he began by taking small amounts, hoping to win the money back, but eventually found himself in deeper debt.

B. allegedly told officials he sometimes took up to $20,000 at a time, either every few days or every few weeks. He reportedly disguised the withdrawals as legitimate expenses for equipment purchases and used wire transfers to move the money between bank accounts.

During the interview, B. said he didn’t realize how quickly the small amounts had added up. The forensic audit confirmed he had made $665,939.50 in unauthorized ACH payments and disguised an additional $17,695 in disbursements.

As of now, B. is out of jail after posting a $500,000 bond while the case proceeds.

Earlier in the month, we reported on the story of a Californian couple who were put under arrest after the authorities revealed they had stolen from the woman’s employer, a casino. 

Last August, a man from Canberra, Australia, was convicted of fraud after stealing over $46,200 from his employer, the Master Builders Association, trying to fund his gambling addiction.