A Kyle man who ran accounting for Austin Freight Systems pleaded guilty Monday in federal court, admitting he siphoned more than $3.2 million from his employer after a federal probe traced a long series of suspect payments into his personal accounts.
According to a press release from the U.S. Attorney's Office for the Western District of Texas, 34-year-old Mitchell David Slentz oversaw accounting operations at Austin Freight Systems and handled payment approvals and internal controls. Prosecutors say that beginning no later than October 2023 and continuing through about March 2025, Slentz diverted company funds through 147 payments and deposited approximately $3,277,937.35 into personal bank accounts. He pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions with criminally derived proceeds. A judge will set his sentence after reviewing the federal sentencing guidelines.
Austin Freight Systems and the Scene
Austin Freight Systems is a third-party logistics and freight-brokerage firm headquartered at 11300 S IH-35 in south Austin, according to the company’s website. The firm lists full-truckload, LTL, and refrigerated services among its offerings, and that address matches the employer named in the federal filing.
How Prosecutors Say He Moved the Money
The U.S. Attorney's Office says Slentz routed vendor payments and then redirected funds into accounts he controlled, making dozens of suspect transfers over the life of the scheme. Prosecutors highlight specific personal expenditures, including a $25,000 payment on July 24, 2024, and a $33,887.83 payment on Sept. 3, 2024, toward student-loan debt, and say Slentz deposited and/or won more than $1 million through an online gambling platform. The FBI Austin White Collar Crime Task Force investigated the case, and federal prosecutors say forfeiture and restitution are possible outcomes.
Charges, Penalties and What That Means
Wire fraud under federal law carries a maximum penalty of up to 20 years in prison, as laid out in 18 U.S.C. § 1343 on the Legal Information Institute site. The separate charge for engaging in monetary transactions in criminally derived property - the count prosecutors used here for the deposits and transfers - is punishable by fines and up to 10 years in prison under 18 U.S.C. § 1957, as reflected in the U.S. Code, which covers large transactions involving criminal proceeds.
Why Employers Should Pay Attention
The FBI’s white-collar guidance notes that accounting and payments roles can carry heightened insider-theft risk, and it recommends layered approvals, independent reconciliations and periodic audits to catch anomalies early. For small and mid-sized firms in Austin and beyond, this case serves as a pointed reminder that internal controls and outside review can help limit exposure to high-dollar losses.
Slentz’s sentencing date has not been set. Assistant U.S. Attorney Joshua Somers is prosecuting the case. Company customers and partners were not named in the federal release, and prosecutors say restitution and forfeiture remain possible as the matter moves toward sentencing.
