Harris County Treasurer: No taxpayer money was at risk in dominatrix scandal

HOUSTON, Texas (KTRK) -- The Harris County Treasurer released an internal audit that he says proves taxpayer money was never at risk by a former employee involved in a 'financial dominatrix' scandal.

Former first assistant county treasurer Greg Lueb was charged with felony theft, accused of stealing more than $30,000 from a county credit union to pay off a woman who was blackmailing him.

Lueb had access to more than $3 billion in taxpayer funds but the treasurer says the audit shows no taxpayer money was ever at risk.

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New video shows former Harris County employee Greg Lueb walking out of jail after he was accused of stealing more than $20,000.

Prosecutors told Eyewitness News that Lueb was second in command at the Harris County Treasurer's Office and worked there for three years, until he was fired in April after a collections manager with the Harris County Federal Credit Union accused Lueb of credit card fraud.

According to court documents, Lueb allegedly told authorities that he willingly obtained funds from the Harris County credit union, which he then sent to the alleged "financial dominatrix." He claims she repeatedly demanded he send her money online or face consequences.

Court papers showed that Lueb told investigators that he had been texting with a woman he met on Collarspace, and he claimed he knew her as "Mistress Cindy." The two allegedly participated within a plot to steal money from the Harris County Federal Credit Union.

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