Auditors say an Austin Energy employee defrauded the city-owned utility of nearly $1 million over six years.
According to an investigation out this week, Mark Ybarra falsified credit card payments to contractors and pocketed $980,000 between 2017 and 2023. Ybarra resigned that year and was indicted on a first-degree felony theft charge by the Travis County district attorney in August.
Ybarra worked at the publicly owned utility since 2014. Prior to his resignation, he performed maintenance and handled third-party contracts for upkeep at Austin Energy facilities. It was in that role he was able to use credit cards to contract out maintenance work that, the city's audit says, was fraudulent.
Ybarra is accused of charging the Austin Energy credit card, paying vendors that had addresses connected with him or his family — or vendors that were completely fake.
The utility told auditors that Ybarra was not required to get manager approval before making the payments, though it says that process has since changed. The utility says it's retooled its contracting processes as a result of the City Auditor's investigation — including requiring the use of management-approved contracts instead of allowing payments through credit cards.
In 2023, the auditor's report says, Austin Energy "attempted to get vendor information from Ybarra, but he did not provide any information and resigned shortly thereafter."
Auditors referred the case to the Austin Police Department. He was arrested in September and was released on bond. His case is still before a Travis County court.
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