Waste Of The Day: Austin Funds Allegedly Sent To Fake Companies

A former employee of the City of Austin’s energy utility, Mark Ybarra, is accused of defrauding the city of $980,000. Ybarra allegedly paid this sum to shell companies with bank accounts linked to his family members. He used a city credit card from 2018 to 2023 to hire repair companies for city buildings. The city auditor found that only eight of the thirty vendors Ybarra paid were legitimate businesses. Ten supposedly fake companies, receiving $400,000, shared a relative's home address. Another $580,000 went to businesses that appeared fake, lacking essential contact information. Ybarra resigned in October 2023 after Austin Energy questioned his invoices and was later indicted for felony theft. During the alleged fraud, Ybarra earned over $534,000 in salary. The city auditor attributed the undetected fraud to inefficient purchasing controls at Austin Energy. Most of Ybarra's purchases were overlooked by his supervisor, Sammy Ramirez. Ybarra's wife, Ambrosia Ybarra, also resigned after being questioned about the invoices. This incident highlights the vulnerability of government agencies to fraud.