MONTGOMERY COUNTY
Montgomery County DA
accused of running 'slush fund' 
Was public money used as a personal piggy bank?
09:24 AM CST on Tuesday, February 12, 2008
When police and prosecutors risk their lives putting drug dealers out of business, they also seize the drug money so it can be used to fight crime.
That money, according to state legal experts, is considered public funds.
But at the Montgomery County District Attorney’s Office, there’s a problem. Some cops, who worked as investigators for the DA’s office, were left unprotected, because forfeited drug money was not used for things like bullet proof vests.
“It’s just insane to be doing law enforcement actions without a vest in this day and age,” said a veteran law enforcement officer, who spoke on the condition of anonymity.
So where were the funds going?
“We get the money we get to do with it as we see fit,” said Montgomery County District Attorney Mike McDougal.
“As long as it’s for an official purpose,” McDougal added.
But the 11 News Defenders discovered “official purpose” meant expensive parties, birthday presents for staff and donations to McDougal’s political buddies.
Consider a barbecue party McDougal hosted at the Montgomery County Fairgrounds in May 2005. Copies of checks and other records show drug forfeiture monies paid not only for the gathering but also included a keg of beer, bottles of booze, and even a margarita machine.
According to a memo from McDougal to the County auditor, it was all to keep “good relations” with “fellow county members.” But why the alcohol? The same memo says it was “needed for the event to be a success.” The total bill for the party was just under $1,500.
And McDougal’s response?
“It’s not like we’re having an orgy out there and everybody’s drunk and carrying on with it; I don’t feel it’s inappropriate at all,” McDougal said.
But just a few months earlier the DA threw another shindig, this time a catered Christmas party for his staff.
It cost an additional $2,500 from the drug forfeiture fund.
McDougal explained, “We have a very close-knit office now.”
“It builds office morale,” he said.
But forfeiture law experts strongly disagree.
“You could make the same argument for flying everybody in the office to Paris,” said David Smith, author of the book Prosecution and Defense in Forfeiture and a nationally-known expert on the subject. “It’s not something that the Texas Legislature would approve of, and for good reason,” he added.
But the 11 News Defenders found much more questionable spending. For example, $100 checks were given as birthday presents to every member of McDougal’s staff.
Chapter 59 of the Texas Code of Criminal Procedure prohibits giving county employees bonuses or salary supplements unless it’s approved by Commissioners Court. But neither that Montgomery County agency nor the County Clerk’s Office could find any record that such a measure was ever approved.
Got a favorite charity?
McDougal does, and gave Montgomery County Youth Services and the local YMCA thousands of dollars in checks from the public fund. But turns out, he sits on the Board of Directors of both of those non-profits.
“I see absolutely no conflict just because I’m on the board, it doesn’t benefit me,” McDougal said.
But not so fast.
“It certainly appears and can be argued that it’s being used to embellish his political image,” said Fred Lewis, a longtime government watchdog and ethics expert from Austin.
“It’s being treated as a slush fund,” Lewis said, adding that it appears McDougal has been using the money as his own personal piggy bank.
“And as a result, public funds are being wasted,” Lewis said.
Consider an $870 check written to a company called Creative School Zone. It was to pay for school folders for local kids, but the district attorney also received what amounts to a political ad on the folders, which read “Michael McDougal supports our Willis Schools.”
“I agree with you on that one, that one was not proper,” McDougal said. He claimed the ad was printed without his knowledge.
“The county auditor called me and said you can’t do it, I said fine, I’ll pay it for it,” the DA said.
But when the Defenders asked if he did, McDougal replied, “I can’t remember if I paid it back or not.”
The Montgomery County auditor told the Defenders her office could not find any record of repayment.
But it was a different story at a golf tournament fundraiser for one of McDougal’s political buddies, Montgomery County Constable Gene Deforest.
McDougal wrote a $1,200 donation from the drug forfeiture fund to his 2003 re-election campaign. But three months after the golf outing, and only after the auditor questioned it, did McDougal pay the money back.
“At the time, I had no earthly idea that wasn’t the proper thing to do,” McDougal said.
But Lewis doesn’t buy it.
“No, that is a ridiculous argument,” he said, adding that campaign finance laws are very clear in Texas.
“The fact that you do something illegal and are caught, then undo it, does not make it right, or legal,” Lewis said.
The bottom line, according to the government watchdog: “If they have extra money, it needs to go for real law enforcement things.”
Lifesaving things, like those bulletproof vests.
“Absolutely it bothered me, and we were able to provide them with loaner vests,” said the veteran law enforcement officer, who works for a neighboring police agency and was able to help his district attorney colleagues out. The officer said no one should have to be begging and borrowing to get equipment as basic as body armor.
“I’ll accept blame for that not being done,” McDougal said.
The district attorney said he thought it was taken care of.
“It’s an oversight on my part, and I’ll take the blame for it,” McDougal said.
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