HARRIS COUNTY, Texas – An audit conducted in the wake of charges against a former assistant Harris County treasurer accused of stealing tens of thousands of dollars to pay his blackmailing dominatrix showed that no taxpayer money was used, officials said Friday.
Harris County Treasurer Orlando Sanchez said in April that no taxpayer money was used after Gregory Lueb was accused of stealing more than $35,000 from a credit union to pay off a dominatrix who was blackmailing him.
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Sanchez revealed the results of the internal audit Friday, saying it confirms what he said months ago.
"The audit proves, once and for all, that absolutely no taxpayer money was ever at risk. The justice system now has authority over Mr. Lueb and I am confident justice will be served," Sanchez said.
File: Gregory Lueb closeout Audit
Lueb, 56, is charged with aggregate theft of up to $30,000.
According to court records, Lueb, then the first assistant county treasurer, opened a credit line of $10,000 at the Harris County Federal Credit Union and began making cash advances against the credit line. Lueb then used fraudulent transactions to make payments on the credit account, according to the records. Before the payments were returned, however, the corresponding amount was made available on the credit account, allowing Lueb to make even more cash advances on the credit line, according to the records.
Court documents state Lueb broke down during his interview with investigators and said that the money was being used to pay off a woman called "Mistress Cindy," who he met on the sadomasochism website CollarSpace.com. Lueb said that his mistress began demanding more and more money, and eventually threatened to tell his wife about their affair if she was not paid.
All of the cash advances were made between September and November of 2016, according to court records. With interest and fees, a total of $42,183.82 was owed on the account, according to the records.
If convicted, Lueb faces up to two years in prison.